Chris Larsen, Ripple’s co-founder, recently lost XRP worth $112 million, contributing to market anticipation of further sell-offs.
Ripple set aside 200 million XRP ($100 million) for its treasury after the unblocking of 1 billion tokens in February. According to onchain data, the company initiated the sale of more than half of the supply escalation for this month on February 5.
It is worth noting that the sell-off exhibited a comparable pattern to previous observed movements.
Nevertheless, the month commenced with a $60 million transaction involving 120 million XRP tokens, the most significant initial monthly payment since February 2023.
What Became of the 120Million XRP that Ripple Paid to ‘rP4X2…sKxv3’?
Ripple’s known treasury account, ‘Ripple (1)’, transferred the tokens to ‘rP4X2…sKxv3’ within five days of their unavailability. In the preceding months, the corporation distributed its sell-offs to this exact address.
Ripple still possesses 80 million XRP from the unlock in February as of this writing.
Following the receipt of payment from Ripple, the account ‘rP4X2…sKxv3’ engaged in transactions with three additional accounts.
At 8:59 p.m. (UTC), it initially transferred 3 million XRP to ‘rBQhw…vZkN5’ and 17 million to ‘rhWt2‒E32hk’. The following day, ‘rJqiM‒La8nE’ was awarded one million XRP.
‘rhWt2…E32hk’ was awarded an additional 9.55 million XRP on February 6, bringing the total amount to 26.55 million XRP. Worth nearly $45 million, the original recipient still possesses 89.45 million XRP that are ready to be dumped on cryptocurrency exchanges.
At any moment, selling pressure on these tokens on the markets could affect the price of XRP.
It is critical to comprehend that Ripple typically divests their holdings during periods of strategic importance.
In essence, the sell-offs constitute a significant portion of the 24-hour trading volume of the token, which has the potential to impact short-term price fluctuations.
Chris Larsen, co-founder and executive chairman of the organization, recently lost XRP worth $112 million due to a breach.
The token’s price experienced an adverse reaction in response to the anticipation of a sell-off, whose nominal value was comparable to the reserves for this month.
