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American blockchain payments company Ripple Labs Inc has made two XRP transfers that have sparked different theories about what its potential purpose is. According to data from Whale Alert, the two overnight transfers included a movement of 75,000,000 XRP worth $36,921,543.
While this first transfer was moved to an unknown wallet, another transfer of 30,000,000 XRP valued at $14,949,851 was also moved to the Bitstamp exchange. This push to Bitstamp has been linked to two possible scenarios, including the potential for sale or as liquidity for the On-Demand Liquidity (ODL) platform of which Bitstamp is a partner.
Just before publication, a huge sum of 409,776,402 XRP valued at $201,627,816 was moved from Bitvavo to an unknown wallet. These moving XRPs are sparking liquidation fears even though their true intentions remain unknown to the industry.
At the time of writing, While the slowdown was perpetrated by fake news surrounding the timely approval of BlackRock’s Bitcoin ETF, XRP’s current moves have also contributed to weakening sentiment across the board.
XRP Rebirth
Some of Ripple Labs’ previous XRP transactions are well known, and considering the legal complexities surrounding the digital currency, the likelihood of a sell-off remains low. This can significantly help allay fears and stabilize the price of the asset in the future.
The recurring whale action around XRP is also another positive factor to take into account in the attempt to stabilize the price of the coin. It is worth noting that Ripple typically releases XRP from escrow on a monthly basis and as one of the major holders of the coin, related movements may be recorded from time to time.
This suggests that their actions could be linked to their business operations and not necessarily to dumping.
