Ripple, the issuer of the crypto XRP, is shaking the market with a massive sale of 250 million of these tokens on June 20. This transaction, worth $122.5 million, raises questions about the future of the token and its price.
Ripple opens the floodgates, 250 million tokens flood the crypto market
On June 20, Ripple, the company issuing XRP Ledger, orchestrated a massive sale of 250 million XRP drawn from its monthly reserves. This large transaction, valued at $122.5 million, shook the crypto market.
Previously, on June 1, Ripple had unlocked 1 billion XRP from its initial distribution, until then locked in monthly deposits staggered until 2027.
The company then strategically distributed these funds: 200 million
Simultaneously, the “Ripple (35)” account injected an additional 200 million tokens into the sales reserves. This bold move pushed the total inventory of XRP ready for liquidation to 400 million, shattering company records for monthly sales preparation.
The sales mechanism follows a well-oiled protocol: first, Ripple transfers the tokens from the “Ripple (1)” treasury account to the anonymous “rP4X2hTa” account. Subsequently, these assets are dispersed across various exchange platforms, ready to enter the market and potentially influence its dynamics.
The consequences on the market
Ripple's massive sales are undeniably impacting the price of XRP. Indeed, the token has generally suffered local declines during the majority of the company's sales. Since January, only 5 of the 14 sales days have seen positive price developments.
Likewise, XRP's monthly performance in 2024 reflects this negative trend for three of the first five months. Currently, the token is trading at $0.488, down 5.5% since June 1, likely heralding another loss-making month.
In short, this sales strategy is part of a complex regulatory context. Indeed, Ripple has been facing SEC lawsuits since 2020.
Thus, the company is visibly seeking to comply with future regulations in the crypto sector. By reducing its hold on XRP, Ripple may be trying to prove that the token is not a financial security under its control.
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