Whale Alert has flagged a transfer from Ripple's escrow account to an account associated with the firm. Whale Alert is a platform that keeps track of crypto transactions involving large sums of currency, and it alerted the crypto community to a transfer of 500 million XRP made from Ripple’s escrow account.
The cryptocurrency moved during the transfer amounted to a total of $130.1 million. This is one of the most massive transfers ever made to and from Ripple.
The size of the transfer and the fact that it went from one Ripple owned account to another has led to several questions being asked by the crypto community. Holders of the XRP token have accused Ripple of intentionally driving the token’s price down by dumping such a high volume of the coin.
Unimpressed Ripple community
Several members of Ripple’s community expressed concerns that the company is manipulating the token’s value through the dumping of their holdings. A Twitter user who goes by the name @CryptoBitlord started a petition named ‘Stop Ripple dumping,’ and over 3,000 signatures have been placed on the petition. The petition has a target of 10,000 signatures.
According to the petition’s description, it seeks to stop Ripple from dumping XRP on the community. It says that Ripple is dumping large amounts of their native token, worth billions, and this has to be stopped.
The price of the XRP token has been slowly declining over the last few months despite reports from the company showing that there has been an increase in the token’s sales. During the second quarter of this year, Ripple sold $251.52 million worth of XRP, and this figure represents a 48% growth on a quarter on quarter basis.
These growing sales still can’t provide support for the price of the coin, and this could be why the vast amounts of it are being dumped.
Ripple network expansion
Accusations that Ripple is dumping the XRP token come after the company’s payment system is gaining popularity among banks and financial institutions. The petition circulating on Twitter states that Ripple recently entered into a partnership with a bank but still, the company is dumping its native token.
Several financial institutions have joined Ripple’s network. One of the latest of these is Xendpay, a money transfer service, which will use Ripple’s network to perform cross border transactions.
With such financial institutions getting into partnerships with Ripple, it leaves a lot of questions regarding whether the crypto company is actually dumping XRP or there has been a misunderstanding.