In XRP News Today, Ripple’s recent sale of 250 million XRP tokens for $122.5 million has raised questions about the future of XRP.
Ripple, the company that issued the XRP cryptocurrency, recently created a stir in the market on June 20. The company sold a huge amount of XRP tokens, numbering 250 million and totaling about $122.5 million. By this XRP news, this big sale has raised many questions about the future value of XRP and the upcoming changes in its price.
Rocking the crypto market, Ripple sold a massive amount of 250 million XRP tokens ($122.5 million) on June 20. Earlier, Ripple unlocked 1 billion XRP from its reserves, kept 200 million of it, and re-locked the rest. An additional 200 million tokens came up for sale from a mysterious “Ripple (35)” account, bringing the total sale to a record 400 million XRP. This has led to concerns about the future value of XRP.
XRP News: Ripple Unleashes 250 Million Tokens, Flooding Crypto Market
XRP news about its company Ripple recently created a stir in the crypto market by selling a huge amount of tokens on June 20. He sold 250 million XRP tokens, which are worth about $122.5 million. This move has raised questions about the future of XRP and its price.
Earlier in June, Ripple unlocked 1 billion XRP from its initial distribution, which was locked as monthly deposits until 2027. The company allocated these funds strategically: 200 million XRP went to their treasury account, while the remaining 800 million were re-locked in new deposits.
At the same time, a mysterious “Ripple (35)” account put an additional 200 million tokens up for sale. This bold XRP news brought the total XRP available for sale to 400 million, a new record for monthly sale preparation. This has raised concerns about the future value of XRP. The fight is still on, stay tuned for further developments in this high-stakes story of the crypto world!
Why is Ripple Selling XRP?
Ripple, the company behind the XRP cryptocurrency, is selling a large amount of XRP from its reserves, in what is being seen as a strategic move.
There can be two possible reasons behind doing this. The first reason, as Ripple explains, Ripple sells XRP to pay its daily trading expenses and invest in things that will help XRP grow with Ripple explains, this increases the liquidity of XRP, making it more attractive to use.
The second reason is that Ripple is facing a lawsuit that will determine whether XRP is a security or not. By selling XRP, Ripple may be trying to distance themselves from this token in an attempt to convince the SEC that XRP is not a security under their control. However, this selloff is causing the price of XRP to decline, which is a bad XRP news.
XRP News: Ripple Flood Threatens Market Crash?
Whenever Ripple sells a lot of XRP, its price goes down. This year (2024) this has happened mostly whenever Ripple has sold XRP. In fact, out of 14 times XRP has been sold, the price has increased only 5 times. The same trend is seen in every month’s performance also. XRP has underperformed for most months this year and is currently trading at $0.488, down 5.5% since June 1.
However, there could be a possible reason behind selling so much XRP. Ripple is in an ongoing legal battle with the SEC, the issue being whether XRP is a stock-like investment. Maybe by selling some XRP, Ripple is trying to convince the SEC that XRP is not under their control, not like a stock at all.
Also Read: XRP Lawsuit: Navigating the Crypto Currents
