The Ripple co-founder moved $115 million worth of XRP coins and now analysts are fearing of a major dump soon. The hype surrounding ripple’s XRP token in 2017 created a huge community that carried over into 2018 and 2019 but it is now dissolving as we are reading in the latest Ripple news.
The interest in the token has fallen off a cliff with the lack of significant banking partnership and tempered utility that slows down the crypto’s growth. That being said, it is still one of the biggest cryptocurrencies by market cap with many investors from 2017 that are still holding on to their tokens in hopes of seeing more growth and adoption in the near future. One short-term event that could place some pressure on the asset is the recent move of $115 million that the Ripple co-founder made.
It’s quite possible that these tokens are moved from his wallet to be sold via OTC and any pressure that this news could place on the cryptocurrency could be offset by the secondary market token purchases that XRP has been making in the recent months. The price of the asset has been struggling to gain any notable momentum in the past few days with its remaining stagnant within the mid -$0.20 region. At the time of writing, XRP is trading up marginally with a price of $0.23 which is around the price at which it was trading over the past few days and weeks.
As some of you may have noticed, I moved an $XRP wallet to NYDIG. I’ve known the founders for a while, and am impressed by their security and top notch institutional standards — this is truly custody 2.0. Check them out at https://t.co/lbr8bG1kEe
— Chris Larsen (@chrislarsensf) September 22, 2020
During the peak of the recent market-wide uptrend, the price stretched to $0.32 before it faced a huge inflow of selling pressure. One trend that could be bolstering XRP in the near-term is the secondary market purchasing Ripple that was conducting as they spoke about this in their Q2 2020 update:
“A healthy, orderly XRP market is required to minimize cost and risk for customers, and Ripple plays a responsible role in the liquidity process… That said, Ripple has been a buyer in the secondary market and may continue to undertake purchases in the future at market prices.”
According to a note from the wallet tracking platform Whale Alert, Chris Larsen, Ripple co-founder moved $115 million worth of coins:
“499,999,979 XRP (115,847,491 USD) transferred from Chris Larsen to unknown wallet.”
He later stated that these tokens were moved to NYDIG which is a custodial solution for crypto. Some users however observed that this could be one platform through which someone can sell a huge token stake OTC. It remains unclear as to whether or not he intended to sell these tokens but his exit from the ecosystem will strike a blog to investors’ sentiment.
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