400 million XRP unlocked, XRP reacts unexpectedly.

🐋 A whale transaction worth 400 million XRP was opened from a locked wallet, worth approximately $213.9 million.

🚨 Ripple's locking and unlocking policy

📝 According to Whale Alert, 400 million transactions on the Ripple blockchain took place between two unknown wallets.

This transaction has caused controversy in the XRP community. While some see this as a "dumping ground", others see it as a sign of impending inflation.

🔐 Ripple's "lock" and "unlock" system was launched in December 2017 and is used to provide liquidity while ensuring predictability and stability of the XRP market.

📆 Launch of XRP

📅 On Friday, May 3, Ripple Labs transferred 800 million XRP to a locked wallet.

This action was taken to rebalance the circulating supply of the digital currency in three tranches.

This lockdown does not result in compensation for losses incurred during the previous week.

🚀 Reaction of 400 million XRP in the market

📈 Approximately 1 billion XRP is typically withdrawn from Ripple's locked wallets each month, and the unspent portion is returned to the locked wallet.

The release of 400 million XRP from the lock leads to speculation about the path the XRP market will take in the coming days.

💹 Despite this massive unlock, the XRP market remains fairly calm.

While large unlocks can cause volatility due to increased liquidity and the potential for speculation in the market, the XRP price shown on CoinMarketCap at the time of writing was $0.5303, up 1.93% .

💼 Ripple's legal battle with the SEC

⚖️ Ripple's legal battle with the US Securities and Exchange Commission (SEC) continues.

Ripple responded to the SEC filing in April seeking civil penalties and repayment of proceeds from the for-profit sale of XRP.