Ripple’s regular monthly sales of XRP lead to an increased supply, which in turn negatively impacts the price of XRP.
San Francisco-based Ripple, the company behind the XRP Ledger and the largest holder of XRP, sold 150 million XRP from its coffers on July 9th for approximately $64.5 million which may have an impact on the sentiments and consequently, the downward pressure on the price of XRP.
July XRP Reserve Sales: Ripple Loses 150 Million Tokens, Market Suffers
Ripple, the company behind XRP, released 1 billion of XRP from escrow in July, with 300 million of them designated for potential sales. Ripple moved 200 million XRP into its treasury, while 800 million XRP were moved into new escrow accounts.
Ripple’s typical modus operandi is to sell XRP from its identified wallet ‘Ripple (1)’ to a wallet ‘rP4X2hTa,’ which adds to the circulating supply. Currently, 100,000,000 XRP are still in ‘rP4X2hTa,’ while 50,000,000 have been sent to ‘rhWt2bhR,’ ready for further transfer to CEXs.
It is also important to note additional whale activity on 8th of July with the transfer of 35. 35 million XRP, equivalent to approximately $16 million, was transferred to the Bitstamp exchange and may have affected the market sentiment.
This transaction has raised interest in the XRP whales movement, especially when there are ongoing updates on the SEC case.
XRP Market Reacts: Price Impact and Speculation in light of Recent Transactions
Everyday XRP sales have been clearly affecting the price; in 2024 it only had 5 out of the 14 days that Ripple sold XRP with positive price movements.
XRP has been in negative territory in four of the six months of the first half 2024. Ripple’s sell-off of 1.676 billion XRP, thus expanding the token supply by XRP trading now at $0.43, has caused XRP to be down 30% year-to-date and 17% since the massive selloff on June 7.
Legal Challenges and Market Sentiment: Evaluating Implications on the XRP
The legal battle between Ripple and the US SEC remains influential in shaping the market sentiment, and a decisive decision in the July 2023 revealed that Ripple’s actions did not violate Howey Test but involved the sale of unregulated securities to big institutional investors.
The decision in contemplation is the resolution of the Ripple-SEC case. The specifications include the proposed $2 billion fine and an institutional sales ban by the SEC, while Ripple, as a counteroffer, presents a $10 million fine.
For example, the pro-crypto lawyer Fred Rispoli expects a verdict from the district judge by July 13 and expects a penalty below $25 million without distortion, but if there are systematic violations, etc.
