Key Points
- Ripple intends to sell 300 million XRP tokens this month.
- The tokens are valued at about $145.50 million.
- This follows the unlocking of 1 billion XRP from escrow.
- Ripple’s sales historically affect XRP’s market price.
In July, Ripple will release $145.5M worth of 300 million XRP tokens. These sales are part of the routine monthly selling activity by Ripple which is the main holder and developer of the XRP Ledger; it increases the circulating supply through such sales.
On July 1, they unlocked $485M worth one billion XRPs from ‘Ripple (24)’ and ‘Ripple (25)’ escrow accounts. Since 2017, it has been a consistent practice to unlock large number of tokens every month where some are sold off for funding operations and projects.
Intrigued about @Ripple‘s next move? The company has earmarked 300 million XRP tokens for a potential July sell-off. What could this mean for the market? Dive into the details: https://t.co/khENTtMHcR $XRP
— Finbold (@finbold) July 2, 2024
Unusual Transaction Activity
This time around an additional $100M worth of hundred million XRPs were transferred from ‘Ripple (35)’ to ‘Ripple (1)’, usually, each month only two hundred million XRPs are sent to their treasury indicating larger than usual sale may be on its way. Later those transferred tokens were moved further to ‘Ripple (12)’ and re-locked for escrow until November 2027.
‘Ripple (25)’ then sent five hundred million unlocked ones over to ‘Ripple (13)’, locking them up until October 2027; these transactions can be verified publicly on the XRP Ledger using block explorer tools like XRPScan.
Historical Context Of Ripple’s Token Sales
To keep transparency as well as market stability when managing token release since implementing its escrow system back in 2017 up until now, no more than three hundred fifty million XRPs have been reserved for monthly sales by the company. In 2024, various amounts were sold each month with four hundred million XRPs being highest in June alone.
The escrow system was introduced to allay investor fears about manipulation of prices through lack of openness; however, this has not stopped markets reacting negatively towards them due to increased supply leading into drops on value for XRP.
Price Impact
XRP’s market performance is influenced directly by Ripple’s sales. Usually, large token releases are followed by dips in prices of XRP. Throughout 2024 negative price action was experienced by XRP on nine out of fourteen days when sell-offs happened.
Early July had it that one XRP is trading at $0.484. Thus investors should keep an eye on what will happen with their tokens this month as planned sales may affect an anticipated rally in the market.
