Ripple's $240 Million XRP Sell Off: What to Expect
Market Impact of Ripple's $240 Million XRP Sell Off
November has shocked the market as Ripple prepares for what could be its largest monthly sell off in seven years. Ripple's core developer has reserved 470 million XRP for sale, potentially worth $240 million. Each month since 2017, Ripple unlocks 1 billion XRP but for the first time reserved double the usual amount this month.
Understanding the Unprecedented XRP Token Unlock
In November, Ripple unlocked 1 billion XRP but sent 470 million XRP to Ripple (1), an account historically used for sales. This unexpected move may punish XRP investors severely. The last significant sell off in June saw XRP's price drop nearly 20% after Ripple sold 400 million tokens.
Market Reactions and Future Implications
Currently trading at $0.511, XRP has seen an 18.70% loss year-to-date. Ripple's sell off could continue with the potential for selling pressure exceeding 470 million XRP as the U.S. Presidential Election approaches. Chris Larsen, Ripple's CEO, recently made a notable $10 million donation to Kamala Harris's campaign, raising additional questions regarding market influences.
Investors must monitor Ripple's upcoming decisions closely as political shifts could significantly affect the cryptocurrency landscape.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.