Ripple, one of the major XRP sellers, uses its monthly unlocked reserves to fund its operations and team members.
By December 21, the company had already dumped 240 million XRP ($148.8 million). This was 40 million tokens more than this month’s unlocked and held amount, suggesting Ripple is liquidating its reserves.
Notably, the remittance network’s sell-off continues as the company spent another 70 million XRP on December 27. The total spent this month surpasses $192.2 million worth of XRPs, and there are still millions of dollars left in its reserves.
‘Ripple (1)’ transactions historic. Source: XRP Scan
Ripple’s monthly dumps and what is left in its reserves
Typically, the company sends part of its monthly unlocks to the ‘Ripple (1)’ account, its treasury reserves. Then, the rest is relocked into new escrows, programmed to finish years forward, for further sell-offs.
These sell-offs happen by first paying an unidentified-owner address, ‘rP4X2…Kxv3’. This address forwards the funds to several other anonymous addresses, probably owned by the same entity. Eventually, the XRP tokens will land in centralized exchanges for liquidation.
Interestingly, 26.34 million XRP ($16.33 million) remains in its treasury reserves, which could be spent at any time.
‘Ripple (1)’ account summary. Source: XRP Scan
This month’s sell-offs were one of Ripple’s largest liquidation events in 2023, which might continue before the year ends. The company has not made any disclosures on the increased volume.
Additionally, Ripple still owns around 46.10 billion XRP currently locked in escrows set to finish by 2027. This makes it the largest holder of XRP. Therefore, it is also the largest source of selling pressure, directly impacting its token’s investment values.
These sales constitute XRP’s supply inflation, as the unlocked tokens start circulating each month. Essentially, Ripple can directly affect the economic dynamics of its token and its future price and value, as previously reported by Finbold.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
