In recent months, XRP has lagged behind the market, stagnating at around $0.61. Even the potential $2 billion settlement in Ripple’s SEC lawsuit hasn’t halted XRP’s decline.
Ripple’s XRP Transfer
On Thursday, Ripple moved 130 million XRP ($79 million) to another wallet, sparking concerns in the market. The transfer has raised concerns that Ripple may sell some of its XRP holdings due to the slow market performance.
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Although the 130 million XRP remains untouched, market participants closely monitor its movement for potential impact on XRP’s price.
At present, XRP is trading at $0.61, reflecting a 2% loss over the past week and only a 4% gain in the last month, despite Bitcoin’s recent surge to new all-time highs.
Ripple’s CTO, David Schwartz, recently admitted the challenge of refraining from selling XRP, citing the necessity to distribute XRP ownership.
Sales of XRP for Distribution
Schwartz emphasized that XRP sales are a key way for Ripple to address community concerns regarding its substantial XRP holdings.
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Ripple must effectively address community concerns to prevent further stakeholder and investor disillusionment. However, the departure of Dev Null Productions, a prominent XRPL software developer, underscores the urgency for Ripple to address these issues promptly.
Amidst ongoing price struggles and regulatory uncertainties, Ripple’s recent transfer of 130 million XRP has sparked concerns in the market, prompting a reevaluation of its impact on XRP’s price dynamics.
Ripple’s recognition of the challenge in balancing XRP sales with community expectations complicates matters, emphasizing the importance of transparent communication and decisive action to retain stakeholder confidence in the project’s future.
