While the price of XRP experienced a slight recovery, tech giant Ripple unlocked a large amount of XRP and moved 20 million XRP to one of the ODL corridors.
San Francisco-based tech giant Ripple has unlocked another one billion XRP, according to data from Whale Alert, a cryptocurrency monitoring service. This scheduled action has been taking place regularly on the first day of every month since 2017.
As February began, Ripple released 1,000,000,000 XRP in two transfers of 500 million each. This amount is worth over 623 million at the time of writing in fiat currency.
Does this transaction affect the price?
Ripple usually locks around 800 million of its unlocked XRP back into escrow within a few hours of its release, with the remaining 200 million to cover its operational expenses, supporting the liquidity of XRP; It uses it to send it to companies, banks or crypto exchanges with which it has partnerships. This basically means adding more XRP to the altcoin’s currently circulating amount.
This process has been carried out regularly for several years. However, Ripple has started to lock down a very large part of the XRPs it has unlocked as of 2020. So, as we mentioned above, most of the released cryptocurrencies, about 80-90%, are locked again, usually within the same day. As a result, this traditional transaction does not affect the price of XRP positively or negatively.
Ripple sent 20 million to an ODL corridor
Again, Whale Alert detected a much smaller XRP transfer made by Ripple through one of its multiple wallets, RL18-VN, during the night.
Twenty million tokens were transferred by the tech giant to the Philippines-based crypto exchange Coins.ph. This platform is part of one of Ripple’s ODL corridors. Launched in the Philippines last year by SBI Group, Ripple’s partner in Japan, and its SBI Remit subsidiary, the exchange is one of the partners in the company’s remittance project.
At the time of writing, XRP, which is ranked eighth according to CoinMarketCap data, is trading at $0.623092, up over 6 percent.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.