In a recent development, the leading blockchain company, Ripple, released a billion tokens from its escrow account.
This act will enable Ripple to maintain its native token’s XRP liquidity in the crypto market. However, the move immediately impacted the XRP price, causing it to drop by 3% in the past 24 hours.
Whale Tracking Platform Calls Attention to Recent Ripple Unlocking
On August 31, the platform that tracks whale movement, Whale Alert, drew investors’ attention to the transactions involving ‘1 billion XRP tokens unlock’. According to the Whale Alert, the unlocking event occurred at midnight and involved four 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
The firm released 200 million tokens worth $102 million in the first step. Then, in the second step, it released 300 million tokens, valued at $153.2 million. The 200 million and 300 million batches of tokens were sent to the same place that Ripple controls, bringing the total balance to 1 billion.
Furthermore, Ripple also unlocked 100 million and 400 million XRP cumulatively worth almost $300 million in two transactions. Interestingly, these transactions were not included in any unusual Memos in August, which led to speculations.
After releasing the tokens, Ripple sent 19.9 million XRP, worth $10.1 million, to Binance. This transfer didn’t include any recently released tokens, which happened at 00:35 (UTC).
Usually, Ripple returns most of these tokens to Escrow once they have enough for their needs, just like they did in August with 800 million XRP. But currently, the firm hasn’t yet returned any of the tokens they unlocked into Escrow.
XRP Drops By 3% As Supply Exceeds Demand
In the past day, XRP’s price has dropped by over 3%, similar to what’s happening in the overall crypto market where prices are falling.
XRP’s price started going down after it went up to $0.549 on August 29. Now, it’s trading at $0.504, which is 7.4% lower than the high it reached on August 29. For the last two days, XRP has been losing value.
But it’s important to note that XRP isn’t the only cryptocurrency going down; many others in the market are also seeing their prices drop during this correction period. Significantly, the mother of all altcoins, BTC, is down by 4%, while the second-ranked crypto asset, ETH, is also going down by 3.5% in the past 24 hours.
Upcoming Party to Celebrate Victory Against SEC Could Rekindle Investors’ Confidence
On August 28, Ripple CEO Brad Garlinghouse said on the X platform that they plan a party in New York City on September 29 to mark their victory against the U.S. SEC. This event is expected to be a memorable moment for Ripple Labs and the entire cryptocurrency community.
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
The tweet states:
“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 September 29 in NYC!” This coming event could relieve the community and also boost investor’s confidence.