On June 1st, 2024, blockchain firm Ripple triggered a flurry of speculation within the cryptocurrency community with a series of unusual XRP transfers. While Ripple routinely unlocks XRP from escrow each month, this month’s activity deviated from the norm, raising questions about a potential increase in XRP sales.
Following established protocol, Ripple unlocked a total of 1 billion XRP from designated escrow wallets (“Ripple 24” and “Ripple 25”). However, what piqued the interest of analysts were a series of preceding internal transfers totaling 1 billion XRP between Ripple’s own wallets (“Ripple 24” to “Ripple 1” and “Ripple 13,” “Ripple 25” to “Ripple 12”). The purpose behind these preliminary maneuvers remains unclear, but they did not affect the final amount of XRP unlocked or re-entered into escrow.
The most notable departure from past practices lies with Ripple’s “Ripple 1” spendable wallet. This wallet currently holds an additional 200 million XRP after receiving a transfer from the previously dormant “Ripple 35” wallet. In May, Ripple followed standard procedure by selling off 200 million XRP from “Ripple 1.” Considering this history and the current surplus, analysts anticipate a significant sale of XRP from “Ripple 1” this month, potentially reaching the full 400 million coin currently held.
The lack of transparency surrounding these recent transactions highlights a crucial need for clearer communication within the cryptocurrency industry. Increased disclosure from Ripple regarding its coin management strategies would go a long way in alleviating market uncertainty.
Moving forward, close attention will be paid to the activity within the “Ripple 1” wallet. Will Ripple decide to sell the remaining coin? Official announcements from Ripple or further analysis of on-chain transactions may be the key to deciphering the company’s plans for coin sales in June.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
