Ripple's Upcoming XRP Token Unlock and Its Impact on the Market
Ripple's Massive XRP Token Unlock Explained
As November unfolds, Ripple has prepped the market for a significant sell off related to the upcoming token unlock of XRP. This month marks one of the largest monthly dumps seen in seven years. Ripple, as the core developer and largest holder of XRP, reserved a staggering 470 million XRP, valued at $240 million, for sale. Each month since 2017, the company unlocks 1 billion XRP but has chosen this time to reserve double the typical amount, raising concerns among investors.
The Mechanics of the Unlock
This month’s escrow concluded with Ripple (24) and Ripple (25) accounts unlocking 500 million XRP each. While Ripple (25) has re-locked everything for future escrows, Ripple (24) has made an unprecedented move by re-locking only 30 million XRP while sending the significant remainder to Ripple (1), where monthly sales occur.
Possible Market Impacts
Such a substantial sell off could lead to drastic repercussions for the XRP price. In previous instances, large dumps have prompted nearly 20% losses in value. Currently, XRP is trading at $0.511, with year-to-date losses accumulating to 18.70%.
Looking Ahead for XRP
The looming sell off is set against the backdrop of the U.S. Presidential Election, which might further influence market dynamics. Chris Larsen, Ripple's co-founder, has committed a $10 million donation in XRP toward a political campaign, emphasizing the intersection of finance and technology in this critical period.
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.