Ripple quietly liquidates 100 million XRP for $56 million

Ripple has unlocked 1 billion XRP tokens in January. Half of it has already been liquidated this week through fractional sales. The issuing company has indeed sold 100 million XRP, for a total value of 56 million dollars. These sales come at a strategic time, just before a highly anticipated SEC decision on the Bitcoin spot ETF.

Ripple liquidates half of its freshly unlocked XRP

Ripple unlocked 1 billion XRP tokens in January, as part of its monthly issuance program. The company retained 200 million tokens in its treasury, the rest being released into circulation. Ripple then began fractional sales of its reserves. 

On January 7th, the company transferred 100 million XRP, worth 56 million dollars, to intermediary accounts used to obscure the trail. One of them retained 82.3 million tokens. The remaining 17.7 million were routed to another account, before landing on exchanges like Bitstamp, Bitso, or BTC Markets.

In total, 45 million XRP have already been deposited on centralized exchange platforms within 48 hours. Ripple still has 100 million liquid XRP tokens in its reserves. These can be used for new sales as opportunities arise.

Strategic sales ahead of a crucial decision 

Ripple’s sales, representing a significant share of XRP’s daily volumes, have a definite impact on its short-term price movement. Therefore, the timing of this liquidation is probably not coincidental.

We are one week away from a highly anticipated SEC decision on potential Bitcoin ETFs tied to the spot price. If these index funds are approved, they could trigger a new speculative frenzy and strong price volatility.

Ripple seems to have anticipated these upcoming market turbulences by already liquidating 100 million XRP. The firm often conducts strategic sales of its reserves during volatility spikes to maximize its profits.

In the span of one week, Ripple has already liquidated 100 million of the 200 million XRP allocated to its treasury in January, capitalizing on market nervousness before a landmark SEC decision. Its fractional sales have a definite impact on the token’s short-term price. It’s essential to watch closely Ripple’s next strategic dispositions, as its XRP reserves remain quite substantial.