TL;DR
- Ripple’s Dormant Wallet Activation: A Ripple wallet, known as ‘Ripple (52)’, which had been dormant for almost two years, recently became active and released a significant 100 million XRP tokens, valued at an estimated $53.5 million.
- Unexpected Token Release: This release comes on the heels of Ripple’s sale of 120 million XRP from its reserved 200 million XRP for its treasury on February 5, with an unexpected addition of 100 million XRP.
- Impact on Market Price: These sell-offs have a direct impact on the market price of XRP and are generally detrimental to its investors, indicating that an increase in selling activity should be taken into account when assessing the risks associated with trading XRP.
A Ripple crypto wallet, which had been dormant for almost two years, recently became active and released a significant 100 million XRP tokens. This wallet, known as ‘Ripple (52)’ by XRP Scan, is under the control of the company. The tokens, valued at an estimated $53.5 million, were transferred to ‘Ripple (1)’, the treasury account of Ripple.
This account is typically used to manage the company’s liquid reserves for potential sell-offs. This sudden activity comes on the heels of Ripple’s sale of 120 million XRP from its reserved 200 million XRP for its treasury on February 5. The company sold the remaining supply for this month but with an unexpected addition of 100 million XRP.
The ‘Ripple (52)’ account was first activated in August 2022, when it received 500 million XRP from ‘Ripple (29)’. After a transaction of 75 million on August 29, 2022, the company only used this dormant address again on February 11, 2024. Notably, it still holds 325 million XRP in its liquid balance.
The History of Ripple (52) and Ripple (29): An Overview of Transactions
‘Ripple (29)’ is a billionaire account with a value of 1.96 billion XRP ($1.04 billion) as of December 2017. Ripple introduces new tokens into circulation every month. It typically unlocks 1 billion XRP, retains 200 million for sale, and relocks 800 million for future releases.
However, Ripple has begun to liquidate some of its previous reserves in the past two months. This new trend could potentially become a regular occurrence, and investors might anticipate larger token releases in the upcoming months. Ripple still possesses over 5 billion of liquid XRP across multiple accounts.
These sell-offs have a direct impact on the market price of XRP and are generally detrimental to its investors. Therefore, an increase in selling activity should be taken into account when assessing the risks associated with trading the sixth-largest cryptocurrency by market capitalization.
