The Ripple community is fearing that XRP might take another dive soon. This follows a move by the company Ripple to unlock 1 billion XRP from its cryptographically escrowed wallets. The total amount of unlocked XRP would amount to $225 million at current prices. The fear is that Ripple is about to dump the new XRP to the market which would instantly flood the market. This will pull demand and see the value drop. Already, XRP is trading at new lows and as we reported reached a two year low last month when it dropped to $0.20. If more XRP floods the market, we could see further losses and a breach of this crucial support.
The unlocking of the tokens was noted by the Twitter account “Whale Alert.” This account monitors huge token movements. In the past, it has helped predict huge rises and drops.
Ripple Community’s Continued Frustration
A few weeks ago we reported on Ripple’s notorious dumping. Over the last couple of years, Ripple has been dumping XRP which has affected XRP prices negatively. When we covered the story, more than half a billion worth XRP had been dumped. The Ripple community was at the time not impressed and was calling for Ripple to stop. The message from the community seems to have fallen to deaf ears. With Ripple unlocking $225 million worth, it would appear they are about to flood the market once again.
Ripple again comes into the spotlight for being too centralized. The company controls 55 percent of XRP’s total supply which means it has always had a greater influence on the price more than other decentralized projects. The company, however, continues to note that the dumps are necessary to help develop and grow its products.
Ripple Move Comes After Stellar Burns 50% Of XLM
Ripple has unlocked the huge sum just weeks after Stellar, a primary rival, burnt more than half its supply. As we wrote, the Stellar project thought it best to burn more than half of its supply to ensure demand and value are high. This different approach could in the future determine the position and value of the two coins.