Whale alert, the Twitter user who reports very large cryptocurrency transactions has just reported that 400,000,000 XRP, the equivalent of $121,035,606 million is locked in an unknown escrow wallet. Ripple is, of course, the suspect as is its routine to move XRP of such amount at some times.
Not an isolated case
Ripple which owns XRP has been suspected of manipulating XRP market as well as pumping the price of the asset. This kind of transactions is almost like a routine for XRP which raises more questions about the authenticity of the XRP market. It has also been alleged that Ripple holds over 60% of the entire XRP supply. This clearly violates the conditions for a truly decentralized cryptocurrency that Ripple claims XRP is.
So far, Ripple is the only cryptocurrency project that is known to control a significant amount of its token, sending it to escrow accounts and sometimes withdrawing from such accounts. Just about 24 hours ago, Ripple moved 1 billion XRP the value of $300 million from an escrow account, probably one of several such accounts the company has.
Why the fund’s movement?
The several huge transactions raise one question – why is Ripple moving so much money in XRP in several transactions within a 24 hour period? Could it be that there is an actual market manipulation going on? The cryptocurrency market is on a recovery mission but so far XRP has not been doing well so the crypto community may easily suspect foul play.
The first 1 billion XRP moved from the escrow is said to have been used for liquidity and such huge amount of XRP liquidate could have a profound effect on the price of the asset. The 400,000,000 XRP were sent to rsjFB8mPWqiZgPUaVh8XYqdfa59PE2d5LG.
If Ripple is as strong as it claims to be with several hundred customers around the world, why would it have to cheat by manipulating the market to favor XRP? It would seem the company needs to get its story straight and make a better name for itself. Right now, its reputation is quite bad and despite its several supporters, many still see it as a scam.
A cryptocurrency enthusiast, author, and investor with high motivation in cryptocurrency/blockchain research and writing. He loves birdwatching and traveling. Follow him on Twitter at @Ponvangbu