Ripple Labs, the San Francisco-based financial technology giant, has conducted a programmed release of one billion XRP from escrow addresses, as per recent tweets by the renowned cryptocurrency tracker, Whale Alert.
The aforementioned cryptocurrency tracking platform has observed three remarkable transfer operations, comprising 500,000,000 XRP, 300,000,000 XRP, and 200,000,000 XRP, with a combined value of $601.4 million.
The withdrawal operations have been ongoing since early 2018, as Ripple designated itself the mission of supporting XRP liquidity on exchanges and in the cryptocurrency market in general. The transfers occur on the first day of the new month. Generally, approximately 800 million XRP is returned to escrow by Ripple Labs on the day following the withdrawal operations until the next release, which happens every 30 days. These regular XRP releases do not appear to significantly impact the XRP price.
The current circulating supply of XRP stands at 53,888,571,585 XRP, according to CoinMarketCap. On Bitstamp exchange, there has been a 2.79% increase since Tuesday and a 2.26% rise over the past 24 hours as of the time of writing.
Furthermore, the same source also uncovered a withdrawal of 27,000,000 XRP from the Binance platform, equivalent to $16,413,770.
At first glance, this might appear as an inappropriate purchase disrupting the trading rule of “buy low, sell high,” as XRP’s price has risen since Thursday. However, additional details shared by the Bithomp explorer, focusing on XRP, indicate that the sender’s wallet also belongs to Binance, making this an internal transfer.
The cryptocurrency community began speculating about a massive sell-off by the cryptocurrency giant, but it turned out the transaction targeted a small Ripple wallet, potentially intending to move it out of the company to an unspecified blockchain address.
The recent turn of events has led the XRP community to believe that the Ripple-SEC case, which has been intermittently looming over the past three years (since December 2020), may be nearing a settlement.
Despite discussions about the continuation of the Ripple case, earlier this year, Ripple achieved two major victories against the regulatory body in court. In July, Federal Judge Torres ruled that Ripple’s XRP transfers to the secondary market cannot be considered securities sales. The second event occurred in the fall, where in a sudden turn of events, the Securities and Exchange Commission dropped personal charges against Ripple’s CEO, Brad Garlinghouse, and the company’s co-founder, Chris Larsen.
The summer ruling by Judge Torres led to a spike in XRP price to a local high of $0.71, followed by a significant rapid decline.
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