Ripple's Ongoing Token Sales Raise Market Concerns.
Ripple, the well-known cryptocurrency company, is actively managing a considerable portion of the XRP token supply, with routine sales amounting to hundreds of millions of tokens monthly. This ongoing distribution has sparked debate surrounding XRP's market prospects.
Ripple's Recent Token Unlocks and Sales.
In early March, Ripple unlocked 1 billion XRP tokens, immediately earmarking 200 million for sale and subsequently re- securing the remaining 800 million tokens in escrow with a future release date set for mid-2027. However, Ripple's sales have accelerated, with 40 million XRP tokens being offloaded by March 13, just days after the initial sale.
The initial sale took place on March 5, a
mere four days after the release of 200
million tokens from Ripple's main treasury
account. The additional sale comprised
140 million XRP from an inactive address,
identified as 'Ripple 52', which was also
under the company's control.
Market Impact and Future of XRP.
The financial implications of Ripple's continued sales are significant, given the 240 million tokens sold are valued at over $150 million, yet they represent just a fraction of XRP's total market cap. These sales have been observed to affect the token's price negatively, coinciding with downturns in daily trading charts.
Speculation suggests that should Ripple cease its sales, XRP might experience a price rally during the latter part of March. Despite this, Ripple's actions this month do not guarantee a halt to sales, with a sizable inventory of XRP still poised for market release, leaving the token's future price trajectory uncertain.
