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Millions of XRP Flow into Ripple Partner Exchange: What's Behind This Move?

Tue, 08/29/2023 - 09:48
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Gamza Khanzadaev
Bitstamp welcomes millions of XRP in jaw-dropping transfer
Millions of XRP Flow into Ripple Partner Exchange: What's Behind This Move?
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According to data sourced from WhaleAlert, a reliable tracker of large crypto transactions, 29.2 million XRP tokens, equivalent to a staggering value of $15.2 million, were transferred from an undisclosed wallet to the renowned Bitstamp exchange. This event marks yet another occurrence of a similar nature within recent days, raising curiosity within the cryptocurrency community.

Notably, a comparable incident unfolded yesterday, as almost a billion XRP embarked on a journey toward the European exchange Bitvavo, alongside the very same destination — Bitstamp.

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Almost Billion XRP Withdrawn from Crypto Exchange in Past Two Days, Price Drops 2.34%

Broadly speaking, two primary scenarios come to mind. The first revolves around the conventional notion that an unidentified whale might be orchestrating these movements with the intention of selling the XRP tokens at a later juncture. This conjecture aligns with the common perception that most crypto transfers to exchanges are selling events.

Fine distinction

A more nuanced perspective emerges as the second scenario. The sender's address, while not directly affiliated with any particular entity, is recognized for its historical involvement in sending XRP. In this context, it is crucial to recall that Bitstamp enjoys a longstanding partnership with Ripple, utilizing its services and being partially owned by a crypto company.

This prompts speculation that the influx of 29.2 million XRP tokens into Bitstamp might not solely be driven by the intention of a major whale to offload assets but could instead stem from a technical exigency such as the need to bolster reserves.

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It is important to note that these are merely suppositions; ascertaining the true intent remains a challenge. Nonetheless, the frequency of significant XRP transactions piques interest, hinting at a narrative worth following closely.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.