There is a possibility of traders experiencing a sell-off in XRP after Ripple unlocked another 1 billion XRP, worth around $230 million from its escrow wallet.
Ripple Draws Criticism for Unlocking of 1 Billion XRP
Ripple’s move has become a common trend that occurs at the beginning of each month, and it has drawn growing criticism every time it happens. There have been questions regarding the amount of XRP the startup has been selling and why is it needing over $200 million each month.
Ripple owns over 50% of the total XRP supply, and over the recent months, it has slowed the sale of the crypto asset to third parties. It has been unlocking one billion XRP every month since October. Ripple’s move often causes sell-off, and some have provocatively compared it to the PlusToken scam in the manner it is offloading funds in the market.
Previously Ripple’s escrow wallet used to sell the digital assets to institutions over the counter, but in the past month, the company sent around 75 million XRP to unknown wallets. The company will reveal the total amount of XRP it has sold once it releases the Q1 recap on the movement of the crypto asset.
Ripple Can’t Explain Why It Needs $200 Million Each Month
According to the latest numbers released by the company, it sold around $13.08 million worth of assets in Q4 2019. This was a significant drop from previous quarters, having sold a total of $66.24 million, $251.51 million, and $169.42 million in XRP in Q3, Q2, and Q1, respectively.
>> Bitfinex and OKEx Hit by DDoS Attacks: Here are the Key Details
The company has been under criticism after failing to explain why it needs these huge sums of at least $200 million per month. The team continues to insist that this is part of its standard procedures, and it is something they have been doing for a while now. It is still not entirely clear how Ripple has been using the funds.
Currently, XRP is trading at $0.235 after rebounding from its local low of $0.225 that it saw on the 27th last month.
Featured image: DepositPhotos © Violka08