Ripple Labs-Affiliated Crypto Wallet Transfers 30 Million XRP to Unknown Wallet

This bold move has raised concerns about selling pressure in the market. Meanwhile, XRP’s price continues to drop amid a general crypto market downturn.

A large amount of XRP, valued at about $15.9 million, was recently transferred from a crypto wallet affiliated with leading blockchain firm Ripple Labs to an unidentified wallet, according to recent blockchain data.

The transaction, which involved the movement of 30 million XRP, was flagged by Whale Alert, a platform that tracks and reports significant crypto transactions. The sending address (rKve…3PEv) sent the XRP to an unknown wallet, and further details about the latest XRP transfer from Ripple are yet to emerge.

There are speculations that Ripple is offloading its reserves to third parties, which could be contributing to the market volatility.

Also, the XRP transaction might be linked to liquidity provisions for Ripple's ongoing operations.

Interestingly, the latest transaction comes amid several XRP transfers from Ripple in recent months. On September 19, several XRP transfers were made by the blockchain company, sending 100 million XRP, valued at $57.92 million, to different exchanges.

Several large XRP transfers occurred last month, with other whales also moving large amounts of the coin. Notably, Whale Alert reported a 95 million XRP transfer to a wallet connected to the Binance crypto exchange.

In another transaction, large XRP holders also moved about 81.56 million XRP to different exchanges.

There are also speculations that these token transfers might be linked to the escrow operations of Ripple Labs. The company launched the escrow system in December 2017 to ensure the predictability and stability of the XRP market.

Unlike most cryptocurrencies, XRP is pre-mined and has a total token supply of 100 billion. Of the coin’s total supply, 80 billion XRP coins were allocated to Ripple. The remaining 20 billion XRP is for Ripple's co-founders and the core team.

To ensure a stable supply of XRP, the firm locked 55 billion XRP in an escrow account. Ripple scheduled the escrow release at a rate of 1 billion per month, with the original release schedule targeting 55 months.

Ripple periodically releases XRP from its escrow accounts to fund its operations. Additionally, unsold XRP goes back into escrow, and this mechanism is expected to steady the price volatility. However, this trend does not usually hold as large unlocks can lead to volatility and potential market speculation.

Within the last 24 hours, XRP has recorded a major price drop, decreasing by 2.76% to $0.524. This decrease comprised a 5.52% decline since the start of the week.

Meanwhile, Ripple's ongoing legal conflicts with the United States Securities and Exchange Commission (SEC) continue to stir discussions in the market. The SEC recently filed a late appeal against Ripple, focusing on the key aspects of XRP's sales and executives' actions. Many expect the regulatory clarity on XRP will boost its price once the case is over.

In a related development, Ripple co-founder Chris Larsen donated $10 million to assist Vice President Kamala Harris's presidential campaign. With high stakes in the US political landscape from crypto leaders, some believe a pro-crypto President will emerge that can help boost XRP ETF approval.

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