400 Million XRP Unlocked, XRP Reacted Unexpectedly.
🐋 A whale transaction of 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 sparked controversy in the XRP community. While some see this as a "dump", others consider it 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 did not lead to compensation for the losses incurred in the previous week.
🚀 Reaction of 400 Million XRP in the Market
📈 Approximately 1 billion XRP usually comes out of Ripple's locked wallets every month, and the unspent portion is put back into the locked wallet. The release of 400 million XRP from the lock leads to speculation on what path the XRP market will follow in the coming days.
💹 Despite this major unlocking, the XRP market remained fairly calm. While large unlocks can cause volatility due to increased liquidity and potential market speculation, the XRP price shown on CoinMarketCap at the time of writing was at 0.5303 $ , up 1.93%.
💼 Ripple's Legal Struggles with the SEC
⚖️ Ripple's legal struggles with the US Securities and Exchange Commission (SEC) continue. Ripple responded to the SEC filing in April seeking civil penalties and the return of proceeds from for-profit sales of XRP.
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