FTX Allegedly Sells Millions of XRP: What’s Happening?
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FTX Allegedly Sells Millions of XRP: What’s Happening?

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In a recent event that caught the attention of the cryptocurrency community, PeckShieldAlert reported that addresses associated with FTX and Alameda transferred approximately $12 million worth of cryptocurrency. This significant move included 5 vBTC worth approximately $7 million sent to Wintermute and 10 million WXRP worth $5.2 million sent to Binance.

Wrapped XRP (WXRP) is a tokenized version of XRP that exists on other blockchains, allowing XRP holders to use their assets in decentralized applications. Meanwhile, FTX and Alameda, both involved in the bankruptcy proceedings, were being investigated for their cryptocurrency portfolios and transactions.

The exact remaining XRP FTX holdings remain unknown. September reports showed that the collapsed exchange had over 225 million XRP in its accounts. If the latest transfer data is accurate, the amount sent to Binance represents no more than 4.44% of the total XRP held by FTX and Alameda.

XRP Price Outlook

This transaction coincides with a noticeable decline in the market value of XRP. Since the beginning of the day, the price of XRP has fallen by more than 3.4%, falling below the key psychological level of $0.50 per XRP. This decline raises questions about possible correlations between the FTX transfer and recent price movements.

XRP to USD by CoinMarketCap

While it’s possible that the price drop and the large transfer are unrelated, such a significant change in assets could impact market sentiment. The transfer could scare off investors and reinforce bearish forecasts, putting further downward pressure on the XRP price.

About the author

Gamza Khanzadaev