CoinJin.com reports:
Ripple, the company behind the development of XRP Ledger (XRP), will unlock 1 billion tokens worth $470 million on July 1st. This is a portion of the monthly sell-off by Ripple, which may have a negative impact on the price of XRP in the coming weeks.
Historically, Ripple has been unlocking 1 billion tokens through escrows since 2017, completing it on the first day of each month. According to XRPScan, the company has been using “Ripple (24)” and “Ripple (25)” to manage the escrows since May 2024. The wallets currently hold 1 billion XRP in monthly unlocking escrows until January 2025.
Specifically, Ripple (24) will unlock 500 million XRP in two escrows of 100 million and 400 million tokens, while Ripple will unlock 500 million tokens in a single escrow on July 1st.
Unlocking data for Ripple (24) and Ripple (25). Source: XRPScan
What happened after the June token unlock by Ripple?
On June 1st, the escrow system unlocked 1 billion XRP from the “Ripple (24)” and “Ripple (25)” accounts. Later, Ripple reserved 200 million tokens for sell-offs and relocked the remaining tokens in the escrow until September 2027. Additionally, the company added an extra 200 million XRP in the last sell-off, making it the largest monthly sell-off in its history with a total of 400 million XRP.
Monthly Ripple (XRP) unlock – June 2024. Source: Finbold
According to the developments, “Ripple (24)” sent 200 million XRP to the “Ripple (1)” treasury account. On June 7th, the company sold 150 million of the reserved amount. On June 20th, Ripple sold the remaining 250 million XRP, concluding the sell-off for the month.
Ripple (1) transaction history. Source: XRPScan
Analysis of XRP price during Ripple sell-offs
It is worth noting how Ripple’s sales directly affect the price of XRP, considering the supply pressure caused by Ripple in the spot market. Historically, XRP has experienced partial crashes for most of the time when Ripple sells tokens.
In 2024, out of 14 sell-off days, only 5 days had a positive price trend: February 5th, 11th, April 14th, May 13th, and 20th. The other nine days resulted in partial crashes, demonstrating the importance of monitoring company activities.
Furthermore, XRP had negative monthly performance for four out of the six months in 2024. So far, since Ripple unlocked 1 billion XRP on June 1st, the price trend has been highly negative.
XRP/USD daily price chart illustrating Ripple sell-offs. Source: TradingView/Finbold
As of the time of writing, XRP is trading at $0.469 per token, a decrease of 9.25% from the unlock price.
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