Amid growing market uncertainties, XRP large holders are pulling big moves, but this latest move seems bearish for the XRP ecosystem as whales appear to be dumping.
On-chain monitoring platform Whale Alert has spotted a massive transfer of 25,498,179 XRP on July 3rd.
The tracker has provided data showcasing the large XRP transfer worth $57,811,584 sent into the largest U.S. exchange, Coinbase, during the latter hours of Thursday.
Usually, large transactions like this are often anticipated by market participants, but this particular XRP transfer fueled concerns across the crypto community as the move teases an attempt to sell by a high-profile investor or an institutional holder.
Notably, the data further revealed that the massive transfer was executed by an unknown wallet address in a single transaction, which might not be good for the XRP ecosystem.
Notably, the data further revealed that the massive transfer was executed by an unknown wallet address in a single transaction, which might not be good for the XRP ecosystem,
$57 million XRP transfer not a sell-off?
While a large XRP transfer to an exchange would usually be considered a sell-off attempt, there seems to be a major twist in the latest whale movement, according to a recent post from XRPwallets.
Contrary to market expectations, the large XRP transfer is a move from Coinbase itself to distribute XRP tokens between internal wallets, and not a sell-off attempt from an outsider.
It is the third large cold wallet transfer the exchange has made in under two weeks, with several sub-wallets receiving a consistent 3.88 million XRP each.
Notably, the massive XRP transfer coincides with prior reports from the XRP_Liquidity tracker, which suggests that Coinbase is collecting large amounts of XRP to its sub-wallets.
While it has showcased repeated XRP transfers tied to Coinbase Cold Wallet 108, XRPwallets indicated that this is just another routine or strategic move pulled by Coinbase, while specifying that there are 45 cold wallets remaining.
Although the reason behind Coinbase’s decision to reshuffle its XRP reserves has sparked speculations across the crypto market, speculators are confident that the move might not directly impact the current price of XRP.
Nonetheless, attempts like this from major exchanges to collect large sums of crypto tokens could potentially be used for liquidity provisioning or institutional on-demand liquidity (ODL) operations.