By Solomon OdunayoWhale Alert, the live tracker of large transactions from and to exchanges, has recently hinted that Ripple, the cross-border payment giant, has just unlocked 500,000,000 XRP worth $106,059,174 from its Escrow wallet, hence XRP price dropped by 6%.
As it’s generally known within the XRP community, Ripple usually sells a part of its XRP holdings to institutions on a monthly basis.
Obviously the quota for the month of May has just been unlocked. Ripple has often been criticized for dumping the digital token XRP on dedicated investors, which has been negatively impacting the price of the cryptocurrency in the market.
However, the payment company has often defended its action by stressing the necessity of the sell-off, claiming that it has no negative effect on the price of the digital currency.
Ripple Unlocks 500,000,000 XRP from Its Escrow Wallet
Whale Alert reported the transaction moments ago via its official twitter handle and published the transaction details on its website.
According to the report, the sum of 500,000,000 XRP worth $106,059,174 was unlocked from Ripple’s escrow wallet on 1st May 2020, at 00:00:10 UTC.
Whale Alert shared this “500,000,000 XRP (106,059,174 USD) unlocked from escrow at Ripple Escrow wallet.”
🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 500,000,000 #XRP (106,059,174 USD) unlocked from escrow at Ripple Escrow wallet
— Whale Alert (@whale_alert) May 1, 2020
The Situation of XRP in the Market
XRP, the third-largest digital currency by market cap, has suddenly lost its surging trend, which could be attributed to recent periodic sell-off, but the underperformance is not limited to XRP, as other digital currencies also exhibit the same price trend.
So, since the unfavorable trend is general, it could then be deduced that the present situation of XRP in the market is only a coincidence to Ripple’s periodic sell-off, which implies that the company’s move is possibly not the cause of the present price dip.
At the time of writing, XRP is trading at $0.214856, with a 6.35% price plummet in the last 24 hours.