March 28, 2023

Ripple cryptocurrency may collapse: another 100 million XRP left the escrow account

Cryptocurrency startup Ripple has unlocked another 100 million XRP tokens (about $ 29 million) from its escrow account, provoking a panic among traders.

XRP Holders run the risk of being pulled intolarge-scale coin sales provoked by large injections of liquidity from the development team. XRP has risen sharply this week, but the bullish trend may end soon. The Whale Alert service (@whale_alert) reports that another 100 million XRP tokens have recently been unlocked from an escrow account.

Community reaction to this news wasextremely negative. Many were not surprised by the decision of the company to release another batch of tokens on the market. Moreover, in crypto-twitter these actions have long been the subject of endless jokes and ridicule. “Right on the clock,” one user writes.

Unlocking tokens has become commonplace forRipple, which, however, is not favored by many members of the community. Each month, the company unlocks 1 billion XRP from its team escrow wallet, so these 100 million tokens have already gone beyond the norm. It is not clear what the team is doing with the funds received, the monthly amount of which amounts to hundreds of millions of dollars.

Recently BitMEX cryptocurrency derivatives exchangeadded perpetual XRP / USD swaps to its product line. Shortly after the listing, the head of the exchange decided to tease XRP supporters, calling the currency "dog shit." At the same time, he also added that since it costs more than zero, then it's time to trade it on BitMEX paired with the dollar. A flurry of criticism fell upon him for this comment, but nevertheless, he did not remove it and did not refute it.

Ripple cryptocurrency may collapse: another 100 million XRP left the escrow account

At the time of writing, XRP is trading withan increase of 1.22% amid growing trade. Recently, the head of Ripple Brad Garlinghouse announced that in 2020 XRP was ahead of bitcoin and the cryptocurrency market as a whole. However, as BeInCrypto previously reported, these claims have nothing to do with reality. Most likely, the coin will have to pass a strength test as soon as the market feels the consequences of a new injection of 100 million tokens.

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