Ripple sent around 150 million XRP (worth approximately $66 million) from its reserves to various crypto wallets.
The transaction is part of Ripple’s regular release of 1 billion XRP from the initial distribution.
The sale of tokens by Ripple has historically had a major impact on XRP’s price.
Ripple recently sent a substantial amount of XRP tokens from its reserves to several different crypto wallets. The transaction, which involved approximately 150 million XRP worth around $66 million, has drawn attention from the crypto community, although it did not have an immediate impact on the price of XRP.
Ripple’s Release and Redistribution of XRP Tokens
On July 1, at the start of the month, Ripple released 1 billion XRP from the initial distribution. From this amount, the company sent 200 million XRP to its vault account, while retaining the remaining 800 million tokens.
Additionally, Ripple transferred another 100 million tokens from the “Ripple (35)” account, bringing the total amount of XRP to 300 million.
As is customary, the transaction originated from the vault account labeled “Ripple (1).” From this account, Ripple sent 150 million XRP to a specific crypto wallet, identified as rP4X2hTa. Transactions like this contribute to the inflation of the XRP supply, as tokens that have never been in circulation before are introduced into the market for the first time.
At the time of writing, 202 million tokens remain in the rP4X2hTa account, while 50 million have already been transferred to another account, rhWt2bhR, which is a well-known intermediate address.
The rhWt2bhR address is frequently used before XRP tokens are sent to crypto exchanges. Subsequently, rhWt2bhR transferred 45.279 million XRP tokens to yet another wallet, r4wf7e9W.
Lastly, along with previously existing tokens, r4wf7e9W sent a total of 71.55 million XRP, worth approximately $31.5 million, to centralized exchanges such as Bitstamp, BTC Markets, and Bitso.
All the XRP wallets mentioned in this article currently hold around 234.38 million XRP tokens, valued at over $103 million. There is a possibility that these tokens may eventually find their way to centralized exchanges.
Typically, entities move their crypto assets from self-custody to centralized exchanges when they intend to sell them. However, some individuals believe that Ripple’s movement of tokens is necessary to maintain adequate liquidity.
The sale of tokens by Ripple has historically had a significant impact on the price of XRP, primarily due to the selling pressure it creates in the spot market. In most cases, when Ripple has decided to sell its tokens, XRP has experienced local price drops.