- Analysts believe that the significant surge in transactions may be linked to the news about Ripple’s IPO
- Ripple’s IPO news may be detrimental in the long run
Ripple News Today – This morning, a significant number of XRP, about 93.5 million in XRP was moved across exchanges. This move from exchanges to wallets came shortly after Brad Garlinghouse announced that Ripple considering making plans to launch an IPO. This has left analysts wondering if this IPO is going to lead to a significant surge in the price of Ripple XRP. The transaction took place yesterday within a few hours and in four transactions. The first transaction involved the move of 10 million XRP tokens, the second was for 11.5 million, the third was for 50 million, and the last big transaction was for 22 million. The transactions were done between Bitstamp, Coincheck, and Bithump
Ripple Latest Update – Is Ripple’s IPO Announcement Responsible for The Transactions?
This isn’t the first time that significant amounts of XRP have been moved from exchanges to wallets this year. However, this one might have a direct link to Ripple’s IPO announcement. The transactions were initially flagged by Whale Alert on Twitter and were confirmed on the analytical site Bithomp. The XRP was sent to an unknown wallet. The IPO in question isn’t the only one Ripple is going to host. It is the first of many to come.
Ripple’s IPO news may be detrimental in the long run
A while ago, about 23 million in XRP was moved across exchanges and more than half of this amount was moved to the largest cryptocurrency exchange per volume, Binance. Even if the news of the IPO is making investors more concerned about their stash, some analysts believe that they are not going to be beneficial long term. One of the most popular people in the space who doesn’t think this IPO is going to be a good idea is Boom Bust’s Anchor Christy Ai.
Ai said that traders will start seeing XRP as a speculative asset if they want to profit from the upcoming price surge that they expect will come after the IPO. It will no longer be about utility. In his words;
“Right now, half the people at XRP they are not using it for the actual utility, they are holding it like an investment. Back when it ballooned to $3, or even now when it’s at $0.22, that value as a utility token, it’s not worth $0.22. So we’re expected to see a major devaluation even though it does have a utility purpose, he said in a recent show.”
XRP (XRP) Price Today – XRP / USD
For now, the price of XRP is still struggling against the USD. Falling even lower than the current resistance is going to be detrimental to the long term growth of XRP.