Tsk, tsk, tsk Ripple… That’s probably what a lot of cryptocurrency enthusiasts are saying right about now given that Ripple’s cryptocurrency, XRP, is doing so poorly at press time. Currently trading for roughly 25 cents per unit, many believe that Ripple’s move of more than 522 million XRP coins to a new wallet may have something to do with the currency’s sudden drop from grace over the past 48 hours, meaning it may have put its own creation in serious jeopardy.
How Ripple May Be Hurting Itself and Its Currency
Ripple is the third-largest cryptocurrency by market cap after bitcoin (number one) and Ethereum (number two). The currency has garnered its fair share of controversy over the years given its alleged non-status as a security. While Ripple executives refer to their creation as a decentralized non-security asset, others disagree, which has resulted in a class-action lawsuit brought against the company by many displeased investors.
Now, it appears the currency’s price isn’t doing too well, and many are blaming a transaction initiated by Ripple itself. Several million XRP units were moved from one wallet to another as reported by Whale Alert, a platform that examines heavy transactions occurring on various cryptocurrency blockchains.
Many believe that the transfer stemmed from an “over the counter” XRP sale.
Whales are individuals that possess large amounts of a single cryptocurrency. Most of the time, they sit and wait for the asset in question to spike, thereby increasing their wealth and overall net worth. When they move money around, they usually do it in grandiose fashion, moving several million around at once. This can spark huge spikes or drops in the market, which probably isn’t used to such heavy transactions.
With Ripple far more centralized than any other blockchain network (company executives still hold more than 50 percent of the XRP units that have been mined), any large move to occur on Ripple’s blockchain is likely to have drastic effects.
Can’t You Guys Stop This?
Ripple’s market cap is nearly $11 billion at press time. Thus far, the company has sold nearly $500 million XRP in 2019 alone, and many are worried that if XRP doesn’t cease its selling behavior, the currency will likely vanish without a trace. A petition has since birthed amongst traders seeking to prevent Ripple from selling any more of its coins for the sake of market safety. The petition has garnered nearly 3,000 signatures.
In a related story, bitcoin ultimately fell by more than $600 in less than an hour about two days ago, which have prompted many to point their fingers at alleged bitcoin whales whom they believe cashed out some of their earnings over the weekend, thereby causing the price to sink below the $10,000 mark. Currently, bitcoin is trading at just under $9,600 per unit.