Ripple is sparking debate across the crypto community today following the massive XRP transfers made by the famous San Francisco-based blockchain company.
On Tuesday, December 23, blockchain monitoring platform Whale Alert released data revealing large-scale crypto transfers from Ripple, including tens of millions of XRP, amid widespread crypto market volatility.
Data shows that Ripple moved 65 million XRP worth more than $121 million to an unknown address, sparking curiosity about what the company is up to.
The transfer was executed in a single transaction and came at a time when the overall cryptocurrency market was trending in a negative direction, with XRP trading in deep red territory.
Did you just dump Ripple?
Although Ripple’s moves have not attracted much attention, the mysterious transfer of such large amounts of XRP from the company has caused market watchers to question the purpose of the transfers.
Some commentators are concerned that, given its timing and nature, the transfer could signal a potential sale or liquidity move for the company.
Additionally, some suggested that the transfer may have been caused by Ripple’s recent operational activities and may be related to strategic partnerships or internal financial management.
Over the past few months, Ripple has been making large-scale XRP moves for business development purposes in response to the push for cross-border payments and increased demand from institutional investors. Therefore, recent transfers may also be due to one of these causes.
XRP turns red despite strong demand from institutional investors
Since the big crash on October 10th, XRP has continued to struggle to maintain its bullish momentum and remains well above key support levels.
The asset remains volatile amid heightened volatility in the broader crypto market, but recent attempts to recoup past losses have failed.
After showing considerable price gains over the past few days, XRP has returned to the red region, showing a 0.42% price decline over the past 24 hours.
At the time of writing, XRP is trading at $1.89, according to data from CoinMarketCap.
This trade caused further uncertainty among short-term traders as there was a large-scale XRP offload from Ripple at a time like this.
