The recent sell-off in the market may not only affect stocks and Bitcoin (BTC). Obviously, the XRP whales are also looking for a safer position in fiat, as an XRP wallet recently moved 24.95 million tokens to the cryptocurrency exchange.
Who is this whale?
As noted by Whale Alert, a huge recent transaction showed that 25 million XRP (about $ 5.2 million) were sent to Bitstamp today. The move comes just a day after Bitcoin witnessed a massive sell-off – which pushed the king to below $ 8,000.
– Whale Alert (@whale_alert) March 10, 2020
The origin of this XRP number is still unclear. The supply of XRP has been distributed to many development team members and early adopters, along with Ripple's partners who receive XRP as a reward. The largest source of free XRP tokens is currently from Ripple's escrow wallet – which in March left 100 million XRP for itself, after returning the remaining 90% after monthly issuance.
Ripple has stated that they have no intention of selling XRP, but they have done so in the past. At the moment, the world's third largest digital asset is still under selling pressure, and is exacerbated by the general panic of the market.
Looking at the wallet address that this latest XRP number came from, we can see that it was activated by BitGo in August 2019, and only held Ripple's token. The wallet has sent tokens to Bitstamp on a number of occasions during the past year.
Bitstamp is a regular destination for XRP
Eurozone-based cryptocurrency exchange Bitstamp is one of the most reliable markets, and also a source of accurate price information. The trading volume of XRP on this platform is reported to be over $ 33 million, but the actual liquidity is close to $ 700,000. This means that any attempt to discharge the coin quickly can cause the price to collapse.
However, Bitstamp's activity is also a factor in the price increase for XRP – which has largely been forgotten in the prolonged bear market. At this time, traders saw the impact of the exchange, as Bitstamp became an important market, replacing the demand that had disappeared from South Korean exchanges.
#XRP trading volumes move to the top spot on the world longest-standing crypto exchange (@Bitstamp). Don't expect an explosion, but apparently utility driven volumes are starting to move. pic.twitter.com/QnCekcvRFd
– TplusZero (@TplusZero) March 7, 2020
Further studies show that the high volume on Bitstamp is not just indicative of trading. The exchange has a fiat market – allowing direct liquidation of XRP. Accordingly, a large amount of money was withdrawn from the exchange and no longer re-entered the cryptocurrency market.
#XRP #Ripple #McCaleb #Bcrash
It is also important to note that it seems that the profits are being cashed out directly through #Bitstamp and we found no evidence that any of it is being reinvested into the crypto market. #CryptoWhale https://t.co/i3x94BRCR4
– Sciclo🦎 (@ Sciclo1) March 9, 2020
Previous investigations show that the number of XRP sold on Bitstamp may come from Jed McCaleb – former Ripple's CTO.
XRP has tried quite a lot recently but still failed before the $ 0.3 resistance. Digital assets hold at $ 0.24 for a few weeks and are currently sinking to $ 0.2. Despite the current selling pressure, there are many expectations that XRP can still bring great profit opportunities, and $ 0.2 is a long-term buying opportunity.
Market goes down, everyone forgets everything they've learned about the #XRP.
These temporary prices don't change the fundamentals.
– The Cryptic Poet (@ 1CrypticPoet) March 9, 2020
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According to Bitcoinist
Translated by ToiYeuBitcoin