Blockchainmedia - Crypto media reported that on October 16, Ripple had carried out a transaction involving 75 million of its unlocked tokens. Is it true that Ripple Labs sold the 75 million XRP?
The movement of a large number of tokens from Ripple's escrow account, which raises questions about its impact on the value of XRP and the motives behind the transaction.
Finbold wrote, these XRP tokens are part of the monthly inflation that Ripple usually sells or spends during strategic market opportunities, such as those that occur during pump-and-dump events with Bitcoin (BTC).
"On the same day, Ripple sold 75 million $28,000. This move also affected other cryptocurrencies, including XRP," explained the crypto media in the article.
Tracking Ripple Labs Patterns Selling XRP Tokens
Previously, Ripple also sold 60 million locked XRP on October 10. This new possible sale follows a very similar pattern to previous sales.
"These XRP tokens were distributed through six different accounts before finally being deposited in small amounts to four exchanges, indicating that the majority of them were sold."
Referring to the data, after unlocking 1 billion XRP on October 1, Ripple re-locked 800 million tokens into a new escrow, while retaining 200 million tokens in Ripple accounts (1). After that, 60 million tokens were spent, leaving 140 million XRP unlocked.
"We are working to track Ripple spending to understand how XRP inflation may impact its holders' purchasing power in the short and long term," added Finbold.
On October 16, of the 140 million unlocked XRP, 75 million were sent from the account "Ripple (1)" to the unknown address "rJqiM...La8nE." Next, 70 million XRP was passed to "rP4X2...sKxv3."
"What caught our attention was that of the initial 75 million tokens (held by "rJqiM...La8nE"), a total of 1.05 million XRP was also sent to "rKL6i...S5Xwa," which was immediately forwarded to an account known to Bitstamp , perhaps for sale on the spot market."
The crypto media continued, of the 70 million tokens received by "rP4X2...sKxv3," only 26 million unlocked XRP was passed to "rhWt2...E32hk."
This address quickly sends 32.205 million to "rJgpQ...7hCvf," for a total of 63.205 million which is then forwarded to "r4wf7...h4Rzn." These accounts appear to be selling a portion of their previous balance.
This token distribution pattern reflects similar events in September and is very similar to transactions from the previous week.
All the same accounts were used again, with short intervals between each step, indicating the possibility that all addresses involved in the monthly XRP sales may belong to the same entity.
In addition to the immediate impact of these transactions, ongoing monthly inflation raises concerns about its long-term impact on the price of XRP.
According to Finbold, if XRP ever reaches its all-time high market cap, the price could be up to 30 percent lower due to the continued unlocking of the token.
