Ripple did it again. In the middle of a controversy sparked by its consistent sales of massive chunks of XRP, the San Francisco based startup released 60 Million XRP worth over 15 Million Dollars.
Twitter account Whale Alert (@whale_alert) shared the information revealing that the transfer took place from a Ripple wallet to a wallet of the same company used to distribute tokens in the OTC market.
From Bullish to Bearish?
60,000,000 #XRP (15,351,840 USD) transferred from Ripple to Ripple OTC Distribution wallet
— Whale Alert (@whale_alert) September 30, 2019
In theory, the OTC markets should not affect the prices reflected by the exchanges in spot markets. However, nothing prevents the new owner of these tokens from injecting them into the market, exerting a bearish pressure that would only accentuate a trend that took XRP to annual lows.
The transaction comes just after a bullish candle that raised the asset price from $0.23 to $0.26. However, on September 24, XRP dropped to $0.21, which is practically a historical minimum that was untested since 2017.
Not The First XRP Dump
The last time Ripple conducted a massive token transfer was just six days ago when it sent 30 Million XRP to the same wallet that received the 60 Million today, as BeInCrypto previously reported.
This wallet’s balance shows that before this transaction, Ripple already sold 27 of the 30 million XRP, having now more than 63 million XRP available to place in the market probably in the next few days.
Recently Twitter User @Crypto_Bitlord initiated a campaign to “Stop Ripple from dumping” millions of its asset. This campaign gained thousands of supporters:
Ripple continue dumping billions of XRP on us, crashing the price!
Every day there is good news… A new bank or partnership announced but still, it manages to keep on dumping.
However, Ripple stands firm and has no intention of quitting. In fact, after Crypto_Bitlord’s accusations, Ripple CEO Brad Garlinghouse argued that his company needs to dump XRP to make the ecosystem grow:
2/ XRP sales are about helping expand XRP's utility – building RippleNet & supporting other biz building w/XRP ie Dharma & Forte. Reality is we DECREASED our sales by volume Q/Q and since then the inflation rate of XRP circulating supply has been lower than that of BTC and ETH.
— Brad Garlinghouse (@bgarlinghouse) August 27, 2019
The community reacted negatively to this sale, and Whale Alert’s tweet has almost zero nice replies. It seems that Ripple’s arguments have less and less support from the XRP Army, especially when the token is at historic lows.
What do you think about this latest XRP movement? Let us know your thoughts in the comments below!
Images are courtesy of Shutterstock, Twitter.