Twitter Erupts As $38M in XRP Withdrawn From Ripple Escrow Wallet
Literal minutes ago as of the time of writing this, Twitter account “Whale Alert” spotted the below transaction: the XRP address designated as the Ripple Escrow wallet, which regularly releases portions of a large token lockup, just transferred 200,000,000 XRP — currently valued at $38.1 million — to an address owned by Ripple Labs, the fintech company using the cryptocurrency and its respective ledger to improve financial services.
🚨 🚨 🚨 200,000,000 #XRP (38,116,032 USD) transferred from Ripple Escrow wallet to Ripple
While it isn’t clear what Ripple is doing with these funds in the immediate future, some immediately began to fear that the company will be liquidating the tokens to bolster its balance sheet. Popular cryptocurrency commentator “Bully” posted the below tweet in the wake of the transaction, touching on his latest crusade against Ripple’s dumping of XRP on retail investors.
Mati Greenspan, founder of Quantum Economics and the former senior analyst at crypto and asset exchange eToro, remarked earlier this week that XRP’s tokenomics have two primary flaws:
Ripple holding a large portion of tokens and selling into the rallies.
Usage of the network does not necessarily require XRP tokens. Banks can use Ripplenet w/o ever touching the token.
Again, it isn’t clear what Ripple is doing with its latest XRP stash released from escrow. Though, as established above, many are fearing the worst.
Ripple’s And XRP’s Long-Term Trajectory Positive?
While there is a flurry of commentators bearish on XRP’s long-term prospects primarily due to the negative sentiment surrounding the cryptocurrency and the simple fact that Ripple owns a vast majority of the coins, some remain bullish on the asset’s future prospects.
Despite his skepticism on the economics of the XRP token, Greenspan remarked in other tweets that he thinks the ledger is providing good technology, backed by a strong team at Ripple. For instance, Ripple has On-Demand Liquidity, which adopting companies say has allowed their clients to pay upwards of 80% less in fees for remittance payments and other financial processes that require inter-bank, international data and money transfer.
Good tech. Strong team. Probably the only crypto project regularly closing deals with financial institutions. https://t.co/x338RGGAlC
He added that due to Ripple and XRP’s focus on collaborating with Wall Street and other financial institutions across the world, the asset, compared to Bitcoin, is “better positioned to integrate itself with the existing banking system,” boding well for potential adoption.
Featured Image from Unsplash
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.