Huge $121 Million Worth of XRP Transaction Sparks Suspicion as Community Thinks Its Ripple
In the crypto industry, the movement of large amounts of crypto at a time is an interesting phenomenon as it could signal a major occurrence in the market and could also trigger certain incidents such as the movement of a huge amount of bitcoin allegedly triggering the most recent bull run. This was the case when WhaleCrypto, a Twitter user who often reports on large cryptocurrency transactions, reported that 400 million XRP which is equivalent to over $120 million, was recently locked in an escrow wallet, the whereabouts of which are unknown. So far, the main suspect of this is Ripple themselves as they're known to occasionally move large amounts of XRP.
Still, it did spark speculation about what could be going on and what might be to come soon.
While the movement of a large amount of crypto is interesting, it is particularly notable in this case because Ripple has been suspected of manipulating the XRP market price in the past, as well as pumping the price of the asset. As mentioned earlier, the movement of a large amount of XRP is not unusual for Ripple. However, it does bring up the question of whether or not they are manipulating the market price, especially since it has been alleged that they own over 60 percent of the entire XRP supply. Their ownership of over 60 percent of the total XRP supply would indicate that XRP is not fully decentralized currency as it claims.
It is also interesting because it is not a very usual practice for a cryptocurrency project to hold a majority of its own crypto supply, much less sending such huge amounts escrow accounts only to withdraw them. Barel 24 hours ago, Ripple moved over a billion XRP, which is valued at $300 for my an escrow account, which is believed to be one of the many that are held by the company.
Besides the interest that surrounds the actual movement of the tokens, there is also interest in what the movements right before. The movement of such amount of money is significant in itself, but the fact that such movements are taking place within such a short period of time brings up even more questions such as whether it is a means of potential market manipulation.
The XRP token has not been doing too great in the market recently, which further fuelled speculation as the 1 billion XRP removed is to be for liquidity and such a huge amount of tokens in liquid form could have a profound impact on the market.
After all, if XRP is as Solid as they repeatedly claimed to be, why would they need to manipulate the price of XRP in the first place. This suspicious behavior does nothing to quell user and investor questions and considering the recent revelations about Tether’s shady behavior, it only puts Tether under a bigger microscope and hopefully, this will be resolved soon enough.
Till then, the market watchers will continue to ask questions and follow the movement of XRP whether in small or large amounts.