Bad news? Ripple will sell 400 million XRP cryptos in June
In a maneuver that could deeply shake the crypto market, Ripple plans to sell 400 million XRP during the month of June, making it the largest token sale in seven years. This decision, which comes in a context of increased volatility, is generating strong reactions among investors and observers. Why did Ripple choose this moment to carry out this massive sale, and what will be the implications?
A Historic Crypto Sale
On June 1, Ripple unlocked a billion XRP, valued at $520 million, through the XRP Ledger’s escrow system. Usually, Ripple transfers 200 million tokens to its treasury each month, but this time, a dormant account known as ‘Ripple (35)’ added an additional 200 million XRP to ‘Ripple (1)’. This suggests an even larger sale this month.
Since the implementation of escrow in 2017, Ripple has consistently reserved up to 350 million XRP for its monthly sales. In 2024, monthly sales have varied between 200 and 260 million XRP. If Ripple proceeds with the planned sale of 400 million XRP this month, it would be the largest sale in seven years, potentially creating turbulence in the crypto market. Transactions are verifiable on the blockchain via XRP Scan, thus offering total transparency regarding the company’s fund movements.
The Motivations Behind the Massive XRP Sale
David Schwartz, CTO of Ripple, explained the reasons behind this massive sales strategy. According to him, Ripple holds a considerable amount of XRP and regularly selling these assets is the only viable alternative to avoiding holding them indefinitely. This approach allows Ripple to finance its ongoing operations, support the development of its ecosystem, and stabilize the crypto market by avoiding a sharp devaluation of XRP.
Ripple currently holds 4.8 billion XRP in its portfolio and 40.1 billion in escrow, the latter being progressively released each month over a 42-month period. This controlled release strategy aims to instill confidence among investors by ensuring increased transparency on XRP sales. Despite these measures, Ripple’s continuous XRP sales raise questions about their long-term impact on the crypto’s value and its perceived utility by users.
Maximize your Cointribune experience with our 'Read to Earn' program! Earn points for each article you read and gain access to exclusive rewards. Sign up now and start accruing benefits.
Click here to join 'Read to Earn' and turn your passion for crypto into rewards!
Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.