Wednesday, January 20, 2021

250 million XRP moved, crypto community fears price manipulation

The Takeaway:

Thirty million XRP worth $67 million was transferred from an unknown wallet yesterday. The price of Ripple's XRP has slumped down by more than 12% as it currently trades at $0.2360. Many are speculating that Ripple might be behind the transfer, but the company's OTC wallet was not involved in the transfer.

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Whale Alert reported that 250 million XRP worth $67,045,053 was transferred from an unknown wallet to an anonymous wallet. Yesterday, the price of the cryptocurrency dropped by more than 12%. At the time of writing the coin is changing hands at $0.2360. 

As of now, the reason behind such a huge transfer is unknown. The XRP holders are concerned about the possible price manipulations. Last week XRP had reached $0.30 after breaking many technical barriers.  

Ripple is known for dumping huge amounts of XRP into the market, but in this transfer, the wallets did not involve Ripple’s known OTC wallet which they usually use to dump XRP into the market. Last week Ripple transferred 30 million XRP worth $8 million to its OTC wallet. 

Some from the crypto community opined that the large move might not be a sell-off, but rather a distribution aimed at providing liquidity to concerned parties. If this is the case, then this should not cause any panic among the XRP holders. 

Let us know in comments what do you think about this massive transfer and was it a sell-off or a potential dump?

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Thomas Gonzales
Thomas Gonzales
Thomas is a Stanford University graduate who loves to talk about the financial world. Though he has a demonstrated history of working in the real estate industry but ever since he came into the crypto space, he has developed a keen interest in researching and writing about bitcoin and blockchain.

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