XRP sinks as Ripple moves 200 million tokens, inviting community suspicion
|- Ripple allegedly moved 200 million XRP tokens to an unknown wallet.
- Ripple's move has allowed speculation that the company plans to abandon its native token.
- XRP is down 4% following the move on Friday.
XRP's price decreased by about 4% on Friday following a report that Ripple moved 200 million XRP tokens to an unknown wallet. Despite the FUD, the company seems to be striking new partnerships as it prepares for its stablecoin launch.
XRP suffers pullback after Ripple's large sell-off
XRP is trending on Friday following a key move from Ripple Labs. Here are the latest news surrounding Ripple today:
Ripple allegedly moved 200 million XRP tokens, according to a report from Finbold. The company made the transfer to an unknown wallet, stirring suspicion among the crypto community.
Read more: Ripple adds $25 million donation to political committee’s war chest
"On June 1, the company released 1 billion XRP from the initial distribution locked in monthly escrows until 2027. Ripple then sent 200 million XRP to its treasury account and locked the remaining 800 million in new escrows. Additionally, the 'Ripple (35) 'account sent an extra 200 million tokens to the sell-off reserves, totaling 400 million XRP," reported Finbold.
The move drew the attention of some community members, who speculated that the company was planning to abandon its native token. The speculations spring from Ripple CTO David Schwartz's reminiscence of a post he made 15 years ago:
"When a scrappy financial startup takes on a web of corruption and betrayal to bring instant payments to the masses, they learn that the cost of disrupting the status quo is higher than they could ever have imagined, forcing them to decide between their vision and their survival."
Also read: XRP holders shed altcoin holdings at a loss, Ripple struggles to tackle resistance at $0.55
As a result, community members began to probe whether it had something to do with their native token.
"Is Ripple abandoning XRP???? Someone needs to explain this ASAP," said one trader.
Schwartz later clarified the intentions of his initial post with a reply.
"It's just a fictional pitch for a fictional movie. The circumstances needed to make the pitch match reality haven't happened ....... yet," said Schwartz.
Following the news of the sale, XRP saw a drop in price. The token is currently down 4%, with Whale Alert reporting two other heavy transfers of 25 million and 26 million XRP tokens, respectively, to unknown wallets from Binance hours after the transfer from Ripple.
Read more: XRP ETF could gain approval in 2025, Ripple holders await lawsuit ruling
Meanwhile, Ripple has announced several partnerships ahead of its stablecoin launch. The company announced a partnership with Zoniqx, a digital asset management platform, to deliver tokenization services to XRP Ledger. Ripple also announced a recent partnership with Clear Junction to enhance GBP and EUR cross-border payments for its customers.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.