- Ripple has been under a lot of pressure from the XRP army regarding its dumping schemes.
- Ripple continues to move XRP despite community concerns.
- XRP’s price falls below $0.24 for the first time in more than 20 months.
Ripple is dedicated to promoting the XRP ecosystem by encouraging multiple use cases of XRP. The company’s primary source of funds is its XRP holdings (up to 60% of the total XRP in circulation). This is why it sells XRP from time to time to generate funds for improving the ecosystem according to Brad Garlinghouse. However, Ripple increased its XRP sales by more than 40% between Q1 and Q2, 2019. This move has been frowned upon by the XRP community members who believe that XRP sales are behind the poor price performance of the token.
Yesterday, Ripple allegedly removed another $132.4 million in XRP from its main XRP wallet. This move has caused a lot of fear, anxiety, and doubt in the XRP community. In fact, the price of XRP fell below $0.24 for the first time in more than 20 months. The XRP tokens, which amounts to about 522,522,373 units, was moved to an unknown wallet by Ripple. The move was spotted by Whale Alert and shared on Twitter:
“🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 522,552,373 #XRP (132,446,488 USD) transferred from Ripple to unknown waan llet
Tx: https://whale-alert.io/transaction/ripple/4747DC17130EA2D95FC03CEAC1FC2843F55058EFB643EF7EE4C80C797DD7F81D …”
Typically, Ripple’s keeps a bulk of its XRP tokens in escrow accounts. However, reports from Coin Metrics revealed that the figures in escrow do not match the figures in XRP reports. Ripple has been bashed for its lack of transparency and has promised to renew its trust with clients. However, with XRP being the worst-performing cryptocurrency of the year, getting the XRP community to calm down is becoming more difficult.
Did The Transfer By Ripple Affect The Price Of XRP?
While the price of XRP fell below a 20-month low, it is important to note that this drop happened before Ripple made the transfer. So, it would be unfair to link the drop in price to this particular move by Ripple. There are still speculations about the transfer. While some members of the XRP community believe that it may have been sent to another Ripple wallet, others have suggested that it was sent to the cryptocurrency exchange Bitgo as a payment rail for xRapid.
After Whale Alert posted the transaction, users started claiming that the transfer was a payment rail for xRapid from Ripple to Bitgo. Some other users suggested that Bakkt could be the receiver of the tokens. It is important to note that Ripple teamed up with Bitgo at the beginning of the year. Bitgo was expected to provide extra functionality and multi-signature security systems for Ripple’s enterprises.