Amidst increasing market uncertainty, large XRP holders are drawing a major move, but this latest move looks bearish to the XRP ecosystem as whales appear to be dumping.
On-chain monitoring platform Whale Alert discovered a massive forwarding of 25,498,179 XRP on July 3rd.
The tracker provided data showing the massive XRP transfer worth $57,811,584, which was sent to Coinbase, the largest US exchange, late Thursday.
Typically, such large transactions are often anticipated by market participants, but this particular XRP transfer has fueled concerns across the crypto community as its moves teasing attempts to sell by well-known investors or institutional owners.
In particular, the data further revealed that large transfers were performed in a single transaction by unknown wallet addresses, which may not be good for the XRP ecosystem.
In particular, the data further revealed that large transfers were performed by unknown wallet addresses in a single transaction.
Isn’t the $57 million XRP transfer a sale?
According to a recent post from XRPWallets, a massive XRP transfer to an exchange is usually considered an attempt at selling, but it appears that there is a big twist in the latest whale movement.
Contrary to market expectations, massive XRP transfers are a move from Coinbase itself to distribute XRP tokens between internal wallets, rather than sell-out attempts from outsiders.
This is the third biggest cold wallet transfer that the exchange has made within two weeks, with some subwallets receiving a consistent 3.88 million XRP each.
In particular, large XRP forwarding matches previous reports from the XRP_LIQUITITY tracker. This suggests that Coinbase is collecting large quantities of XRP in its sub-wallets.
Introducing a recurring XRP forwarding tied to Coinbase Cold Wallet 108, XRPWallets indicated that this was another routine or strategic move drawn by Coinbase, specifying that 45 cold wallets remain.
The reason behind the decision to reshuffle Coinbase’s XRP reserve has sparked speculation across the crypto market, but speculators believe the move may not directly affect XRP’s current price.
Nevertheless, such attempts from the main exchange to collect large quantities of cryptographic tokens could be used to provide liquidity or to institutional on-demand liquidity (ODL) operations.