Ripple Floods The Crypto Market With Millions Of Tokens, Is XRP In Peril?

Ripple,
the
issuer
of
the
XRP
crypto,
shakes
the
market
with
a
massive
sale
of
250
million
tokens
on
June
20.
This
operation,
valued
at
122.5
million
dollars,
raises
questions
about
the
future
of
the
token
and
its
price.

Ripple
opens
the
floodgates,
250
million
tokens
surge
onto
the
crypto
market

On
June
20,
Ripple,
the
company
issuing
the
XRP
Ledger,
orchestrated
a
massive
sale
of
250
million
XRP
drawn
from
its
monthly
reserves.
This
large-scale
transaction,
valued
at
122.5
million
dollars,
shook
the
crypto
market.

Earlier,
on
June
1,
Ripple
had
unlocked
1
billion
XRP
from
its
initial
distribution,
which
had
been
locked
in
monthly
deposits
staggered
until
2027.

The
company
then
strategically
allocated
these
funds:
200
million
XRP
fueled
its
Treasury
account,
while
the
remaining
800
million
were
re-locked
in
new
deposits.

Simultaneously,
the
“Ripple
(35)”
account
injected
an
additional
200
million
tokens
into
the
sales
reserves.
This
bold
maneuver
pushed
the
total
stock
of
XRP
ready
to
be
liquidated
to
400
million,
shattering
the
company’s
records
in
terms
of
monthly
sales
preparation.

The
sales
mechanism
follows
a
well-oiled
protocol:
initially,
Ripple
transfers
the
tokens
from
the
“Ripple
(1)”
Treasury
account
to
the
anonymous
“rP4X2hTa”
account.
Subsequently,
these
assets
disperse
across
various
exchange
platforms,
ready
to
enter
the
market
and
potentially
influence
its
dynamics.

The
consequences
on
the
market

Ripple’s
massive
sales
undeniably
impact
the
price
of
XRP.
Indeed,
the
token
has
generally
experienced
local
declines
during
most
of
the
company’s
sales.
Since
January,
only
5
out
of
the
14
sales
days
have
seen
positive
price
movements.

Similarly,
XRP’s
monthly
performance
in
2024
reflects
this
negative
trend
for
three
of
the
first
five
months.
Currently,
the
token
is
trading
at
$0.488,
down
5.5%
since
June
1,
likely
indicating
another
deficit
month.

In
summary,
this
sales
strategy
fits
into
a
complex
regulatory
context.
Indeed,
Ripple
has
been
facing
SEC
lawsuits
since
2020.

Thus,
the
company
seems
to
be
aiming
to
comply
with
future
crypto
sector
regulations.
By
reducing
its
grip
on
XRP,
Ripple
may
be
attempting
to
prove
that
the
token
is
not
a
financial
security
under
its
control.

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