Ripple Plans Significant XRP Sale in February: Unlocks 1 Billion Tokens

Ripple, holding approximately 39.9 billion XRP in locked escrows, initiated a significant token unlock on February 1, releasing 1 billion XRP valued at $500 million. Retaining 20%, Ripple prepared to sell the remaining tokens on the market, a monthly practice that affects the long-term value of XRP. Finbold has closely monitored these unlocks and identified patterns influencing the asset's value.

February Token Unlock Details

Ripple, consistent with previous months, held back 200 million XRP from the recent unlock. Priced at $0.50 per token, this amounts to roughly $100 million. The company strategically managed this month's selling activity by transferring the 200 million XRP from the unlocked escrow address ('Ripple (22)') to its liquid treasury ('Ripple (1)'), both controlled by Ripple.

Ripple (1) account summary. Source:XRP Scan

Escrow Transactions and Future Unlocks

The 'Ripple (22)' account, unlocking 500 million XRP on February 1, distributed 200 million to 'Ripple (1)' and 300 million to 'Ripple (10)'. Notably, 'Ripple (10)' is currently used to re-lock XRP in new escrows, with the 300 million set for release on July 1, 2027. Similarly, 'Ripple (23)' sent its unlocked 500 million to 'Ripple (11)', fully locked in an escrow until June 1, 2027.

Despite these transactions, both 'Ripple (22)' and 'Ripple (23)' still hold 1 billion XRP for escrows set to end on March 1, 2024. After these unlocks, attention may shift to 'Ripple (10)' and 'Ripple (11)' in anticipation of further token dumps.

Monthly Ripple (XRP) unlock – February, 2024. Source: Finbold

Market Impact and Ripple's Strategic Sell-Offs

Ripple strategically liquidates holdings at opportune moments, contributing a substantial weight to the token's 24-hour trading volume and potentially influencing short-term price action. The recent hack of Ripple's Co-founder and Executive Chairman, Chris Larsen, losing $112 million worth of XRP, heightened market concerns about the anticipated sell-off.

In conclusion, Ripple's planned token sales in February add complexity to XRP's market dynamics, raising considerations about short-term price fluctuations and potential impacts on investor sentiment.