In a recent development, the prominent blockchain company, Ripple, has initiated the release of one billion tokens from its escrow account. This strategic move is aimed at bolstering liquidity for Ripple’s native token, XRP, within the cryptocurrency market. However, the immediate consequence of this action has been a 3% decrease in the XRP price within the past 24 hours.
Whale Tracking Platform Highlights Recent Ripple Token Unlock
On August 31, Whale Alert, a platform dedicated to tracking whale activities in the crypto space, brought attention to a series of transactions involving the unlocking of “1 billion XRP tokens.” According to Whale Alert, this unlocking event transpired at midnight and comprised four distinct transactions.
🚨 19,920,318 #XRP (10,167,904 USD) transferred from unknown wallet to #Binancehttps://t.co/rohMiU9pUQ
— Whale Alert (@whale_alert) September 1, 2023
In the initial step, Ripple released 200 million tokens with a total value of $102 million. Subsequently, in the second step, they issued 300 million tokens valued at $153.2 million. Remarkably, both the 200 million and 300 million token batches were directed to the same location controlled by Ripple, aggregating the total to one billion tokens.
Furthermore, Ripple executed two additional transactions, unlocking 100 million and 400 million XRP tokens, with a combined worth of nearly $300 million. Intriguingly, these transactions did not feature any unusual memos in August, sparking speculation within the crypto community.
Following the token releases, Ripple transferred 19.9 million XRP, equivalent to $10.1 million, to Binance. Notably, this transfer did not include any of the recently unlocked tokens and took place at 00:35 (UTC).
Typically, Ripple returns the majority of these tokens to escrow once they accumulate sufficient reserves for their operational requirements, as they did in August when they returned 800 million XRP. However, as of now, the company has not reinstated any of the recently unlocked tokens into escrow.
XRP Declines by 3% Amid Supply Surpassing Demand
Over the past 24 hours, the price of XRP has experienced a decline of more than 3%, mirroring the broader trend of falling prices in the cryptocurrency market.
XRP’s price began its descent after reaching $0.549 on August 29, currently trading at $0.504, representing a 7.4% decrease from its August 29 high. Over the past two days, XRP has consistently lost value.
It is essential to note that XRP is not the sole cryptocurrency undergoing a decline; many others in the market are also witnessing price decreases during this correction phase. Notably, Bitcoin (BTC), the leading cryptocurrency, has declined by 4%, while Ethereum (ETH), the second-ranked crypto asset, has also experienced a 3.5% drop in the past 24 hours.
Anticipated Celebration to Restore Investor Confidence Following Victory Against the SEC
As promised – it’s time for that proper victory party.
The last few years have been quite the journey and I look forward to sharing a celebratory toast on Sept 29 in NYC! https://t.co/9YDQGnK6Pg
— Brad Garlinghouse (@bgarlinghouse) August 28, 2023
On August 28, Ripple CEO Brad Garlinghouse announced on the X platform that the company plans to host a celebratory event in New York City on September 29 to commemorate their victory against the U.S. Securities and Exchange Commission (SEC). This upcoming event is expected to be a significant moment of triumph for Ripple Labs and the entire cryptocurrency community.
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