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In a rather surprising development, a transaction on the XRP Ledger has led to the burning of 10,000 tokens, sparking speculation within the crypto community.
The incident was reported by XRP Explorer XRPscan, which tweeted a "moment of silence" for a transaction in which 10,000 drop tokens were burned at once. XRPscan likewise shared a screenshot of the transaction details. The tweet left many wondering whether this burn was a mistake or a deliberate action.
Thomas Silkjaer, Head of Analytics and Compliance at InFTF, weighed in on the situation, speculating that the burn might have been initiated by the issuer themselves. This adds an intriguing layer to the story and raises questions about the intentions behind the burn.
Tomiwabold OlajideDrop, the token involved in this incident, is a meme coin on XRP Ledger with over $10 million in market cap. To put things into perspective, there are 1,000,000 drops in one XRP, meaning that one drop is equal to 0.000001 XRP. This fractional value underscores the scale of the burn which, while seemingly small, might have significant implications over time.
Deliberate action?
A recent tweet from First Ledger, a platform that allows users to track, trade and manage tokens on the XRP Ledger and which hosts the Drop token suggests that the burn transaction might be deliberate rather than accidental.
In a tweet, First Ledger hinted that it was going to embark on burning XRP launching tokens in a bid to create scarcity and thus drive up the token's supply.
"If you really think about it over time we are going to burn so much XRP launching tokens that we are going to cause the price to pump which means meme coins on the XRPL are actually bullish," First Ledger wrote in its tweet.
At press time, First Ledger was yet to comment on or acknowledge the 10,000 drop token burn, thus leaving room for speculation.
In the past week, XRP Ledger surged in active wallets significantly, reaching 35,799 unique wallets, making at least one transfer in a single day, the highest in over three months. Additionally, 3,858 new wallets were created in a single day, the highest amount in over seven months.
Alex Dovbnya
Vladislav Sopov
Dan Burgin