Ripple, the parent organization of XRP, offloaded a substantial 120 million XRP tokens following the U.S. Securities and Exchange Commission’s (SEC) recent legal gains. As the SEC attained the upper hand in the legal battle, Ripple’s maneuver has exacerbated concerns about market instability and sparked unrest within the XRP community.
Ripple’s Massive XRP Sell-Off Raises Eyebrows.
According to a recent report by Whale Alert, a platform tracking on-chain transactions, Ripple initiated a significant transfer of 120 million XRP tokens, valued at approximately $60.88 million. This sizable move has triggered speculation of downward pressure on XRP’s price, especially considering the recent rebound experienced by the cryptocurrency. Furthermore, data from Bithomp reveals that Ripple’s XRP reserve currently holds $80 million worth of tokens, suggesting that the company offloaded a substantial portion of its holdings.
Adding to the unease within the XRP community, another notable whale transaction involving the transfer of 28.85 million XRP tokens, valued at $14.62 million, to Bitstamp, a prominent cryptocurrency exchange, has been reported. This transaction, executed via an undisclosed wallet, has further fueled apprehensions about potential market volatility.
SEC’s Legal Victory Intensifies Uncertainty.
The SEC’s recent legal triumph against Ripple has exacerbated the prevailing uncertainty surrounding XRP’s future. The regulatory body successfully filed a motion in January 2024, seeking approval from the Magistrate Court to compel Ripple to disclose its financial statements for the years 2022-2023. Additionally, the SEC requested access to information regarding post-complaint contracts overseeing institutional sales of XRP, as well as clarification on the proceeds derived from such sales.
Following the SEC’s request, the Magistrate Court, under the jurisdiction of Judge Sarah Netburn, has granted permission to compel Ripple to disclose the requested financial information. Moreover, the U.S. District Court for the Southern District of New York has approved all the SEC’s requests, further intensifying the legal scrutiny faced by Ripple.
As of the latest data, XRP’s price has experienced a slight decline, hovering around $0.5027. Despite the market turbulence, XRP’s 24-hour trade volume has witnessed a significant spike, reflecting heightened trading activity amidst the ongoing legal developments. With uncertainty looming over Ripple’s legal battle and its implications for XRP’s future, market participants remain on edge, closely monitoring developments in this high-stakes saga.