One of the most popular cryptocurrencies, XRP, has encountered challenges that make it different from others, which indicates that people are still pessimistic.
Ripple’s recent move to release a large number of tokens from escrow has made people even less sure about the future of the digital asset.
Early Friday morning, two significant transactions were flagged by Whale Alert, an on-chain whale tracking tool. In the first, 200 million tokens worth $122.63 million were freed from escrow.Â
Soon after, a second trade revealed 300 million XRP tokens worth a total of $183.89 million, which is more than $300 million all together.
XRP’s Unplanned Token Release
The Ripple community has concerns about these token withdrawals for a number of reasons. First, Ripple usually does planned unlocks at the beginning of each month. This makes these transactions in the middle of the month stand out, which has the crypto community’s attention.
People are concerned that Ripple will sell these tokens, which would add to the supply on the market and make the price decline of XRP more severe.Â
Unfortunately, Ripple has yet to disclose what these unexpected unlocks are for, and there have been no further transfers.
The Ripple community is used to scheduled unlocks. Every month, 1 billion XRP tokens are released on a set plan, and most of them are returned to escrow.Â
These kinds of events usually do not have an enormous impact on the price of XRP. But because these leaks came as a surprise, people are curious what Ripple is up to.
Even with the unlocking of the coin, XRP’s price has stayed fairly stable around $0.61, falling only 0.91% in the last day. Still, the altcoin has gained 4.74% in value over the past week, which shows that the positive trend that started earlier is still going firm.
