Chris Larsen co-owner of Ripple has sold a large amount of XRP tokens, creating buzz within the crypto world. The CAC transfer worth $60.54 million has put into question the rationale behind and the timing of the transfer, especially at this time that Ripple is engaging in its legal tussle with the US SEC.
Chris Larsen Moves 20 Million XRP to Unknown Wallet
Another complaint was filed by a blockchain tracking platform Whale Alert that Chris Larsen transferred 20 million XRP tokens worth around $60.54 million to an unknown wallet. This transaction has elicited talking points regarding possible purposes of the transaction which has led to the aforementioned.
This transfer comes less than two weeks after another whale movement of more than 31.17 million XRP tokens equal to over $80.59 million. In that instance, the tokens were sent to Coinbase, This gave rise to other speculations of a probable dump. However, Larsen’s decision to shift the company to an unknown wallet has been received differently as investors in cryptocurrencies focus on the Ripple token once again.
Ripple vs US SEC Lawsuit: A New Twist
Larsen’s absence comes at the same time as a new motion in the ongoing lawsuit between Ripple and the SEC. Recently the SEC appealed to the previous court decision that stated that XRP was not a security. These legal proceedings which commenced December 2020 have shaped the perception of and usage of XRP in the market.
The SEC’s appeal reaffirms its position that XRP sales are acts of securities sale under the Howey Test. The appeal challenges the previous ruling that was in favor of Ripple and revived discussion on whether XRP is a security or not. The latest innovations have for the time being diverted endeavors toward speculations about an XRP-based exchange-traded fund (ETF).
XRP Price Experiences Notable Gains
Following the above pricing model, we noted that XRP price had risen by over 10% on the last day to trade at $3.11. This rise also represents a weekly increase of 34.51% and a monthly change of 21.74%. XRP trading volume was up by 74.53% and market capitalization, by 9.30%.
Some have singled out this move [the sale of XRP tokens by Chris Larsen to mean that the asset is bullish. This feeling combined with the price action, enhanced the expectation of an increase in XRP’s price target some already estimated at $6.
Market Reaction to XRP Whale Activity
The cryptocurrency market has also reacted in the following ways to large transactions associated with XRP. Earlier, Let’s Talk Bitcoin News reported that whale movements to exchanges such as Coinbase raise high sell signals, while Larsen’s movement to an unknown wallet did not cause similar concerns. However, it has highlighted the trading activity of XRP and possible future developments of the coin.
Large transactions are normally used as a barometer of market sentiment and may provoke trading activity. Analysts and investors are closely watching the Ripple ecosystem in part because the legal status of XRP remains in a grey area. The recent activity proves that the movements of whales and new regulations still influence the stocks significantly.
Currently, the whale activities coupled with legal battles and price movement guarantee XRP to stay relevant to the interest of the cryptocurrency community and forecasting experts.
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