Here’s What Happened to Ripple’s Largest XRP Sell-Off in 7 Years
In an unprecedented development this November, Ripple executed its most substantial escrow release in seven years. The company released 470 million XRP which marked a departure from its traditional token management strategies. The company’s actions have drawn significant attention from the market.
The month began with Ripple unlocking one billion XRP tokens on November 1st, followed by a rapid deployment of 470 million XRP within five days. This accelerated distribution pattern is so different from the company’s previous methodical approach to token management, where such movements typically occurred gradually throughout each month and the amount reserved was 200 million XRP.
According to official statements from Ripple, these enhanced transfer activities were anticipated, particularly regarding partnerships with third-party entities such as ETPs and trusts.
As of September 30, the company held approximately 4.43 billion XRP available for immediate transfer and an additional 38.90 billion XRP secured in escrow accounts, scheduled for systematic release over the next 42 months.
Ripple’s Token Movements
Breaking down the recent transfers, Ripple first unlocked the tokens from two accounts labeled Ripple (24) and (25). They then locked 530 million XRP away until February 2028 in Ripple (12) and (13), keeping 470 million XRP in their main account, Ripple (1).
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
On November 6, Ripple moved all 470 million XRP to a new wallet, which split the funds afterward. This wallet sent 170 million tokens to Ripple (50) and 100 million to another address. Some of these tokens eventually reached cryptocurrency exchanges like Bitstamp and Bitso, making them available for trading.
The community initially feared this release, tagging it a sell-off and expecting a decline in the digital asset’s price. However, XRP has shown resilience, trading at $0.5537, up 8.31% over the past week.
This suggests there’s enough buying interest to handle the increased supply of tokens entering the market. The resilience can also be partly attributed to Donald Trump’s victory over Kamala Harris in the U.S. Presidential election.
Despite the shift in escrow management strategy and increased selling, XRP could still perform well, especially if SEC Chair Gary Gensler is removed as Trump promised.
Ripple CEO Brad Garlinghouse recently reminded him about this exciting promise , and Ripple might be capitalizing on the excitement surrounding XRP to execute strategic changes.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
Follow us on Twitter , Facebook , Telegram , and Google News
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
BTC breaks through $97,500
DOT breaks through $8.5
Data: BTC market share falls below 59%
SOL breaks through $250