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.
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
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
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.
Want to take home a miner for free? Join the #ElphaPexPriceChallenge now! For your chance to win a DG Home 1 miner, this compact home miner is designed for both new and experienced miners.
JinseFinanceMeta’s CEO claimed earlier this week that the Biden administration was trying to “pressure” the company to play down content about Covid.
JinseFinanceGolden Weekly is a weekly blockchain industry summary column launched by Golden Finance. Its content covers the week's key news, mining information, project dynamics, technological progress and other industry dynamics.
JinseFinanceARK Invest, led by Cathie Wood, has strategically liquidated its remaining $200 million GBTC holdings, redirecting $100 million to Bitcoin Futures ETF Bito. The move aligns with the anticipation of a potential spot Bitcoin ETF approval, reflecting ARK's proactive response to evolving market dynamics. Wood's optimism about Bitcoin's long-term growth remains strong, despite short-term market fluctuations tied to regulatory speculation.
BerniceAlameda's CEO offered to buy Binance's FTT token holdings for $22 apiece.
OthersWith no major short-term bullish catalysts in sight, Bitcoin price has little to no support in case of a bearish turn.
BeincryptoCoinbase's new institutional-focused staking product won't be a "near-term phenomenon" while liquid staking is still being worked out.
Cointelegraph
NulltxThe crypto industry has endured some infamous bear markets, and the 2022 downturn will be remembered for its acid test of decentralized finance platforms and over-leveraged trading.
CointelegraphWill the wave of lending protocols struggling in the bear market stimulate the development of alternative solutions to create more sustainable investment opportunities?
Cointelegraph