- Ripple unlocked 1 billion XRP tokens amid the recent announcement of a multi-token cryptocurrency reserve in the US, sparking debate among investors.
- While XRP initially surged, it later dropped over 10% following a large transfer to South Korean exchange Bithumb, raising concerns about market volatility.
Ripple has once again made headlines after unlocking 1 billion XRP tokens from its escrow. This move follows the recent announcement confirming XRP’s inclusion in a multi-token cryptocurrency reserve in the US. The decision has sparked intense debate among investors and industry experts, with strong opinions on both sides.
A Scheduled Release or a Strategic Move?
According to Whale Alerts, a blockchain transaction monitoring platform, Ripple transferred 500 million XRP tokens from an unknown wallet and another 500 million into escrow on March 2. This follows Ripple’s long-standing practice of unlocking a billion tokens at the start of every month, a process set in motion in 2017.
However, this time, the token release comes at a particularly crucial moment. XRP had recently seen a dramatic price rally, briefly surpassing Ethereum’s (ETH) fully diluted valuation. The surge was fueled by news of the crypto reserve, but the momentum was short-lived as XRP’s price quickly corrected, dropping over 10% to $2.3.
Market Reactions and Concerns
The announcement of the crypto reserve has been met with mixed reactions. Some see it as a step toward institutionalizing digital assets, while others remain skeptical. Critics, including entrepreneur Naval Ravikant, argue that taxpayers should not bear the burden of assets that claim to be decentralized but function otherwise.
Adding to the volatility, a significant $147.5 million XRP transfer to South Korean exchange Bithumb has raised concerns. Historically, South Korean traders have played a pivotal role in XRP’s price movements, making this transaction a potential catalyst for further fluctuations.
What’s Next for XRP?
Despite the controversy, Ripple remains one of the most influential players in the crypto industry. With more than 38 billion XRP tokens in its possession and an additional 4.5 billion in direct control, the company’s financial strength is evident. However, the market will be watching closely to see if XRP can regain its recent highs or if this latest dip signals a prolonged correction.
For now, investors are left to weigh the risks and rewards as Ripple continues to navigate both regulatory scrutiny and market turbulence.
