Ripple's co-founder, Chris Larsen, sells off 50 million XRP. The question remains whether this action concerns investors.
In the dynamic world of cryptocurrencies, XRP price is showing significant progress that could potentially benefit its holders in the coming years. The network is gaining momentum in multiple arenas, as indicated by recent developments.
Last week, Ripple, the company behind the development of XRP, launched its own dollar-backed stablecoin. This move provides institutional investors with more stablecoin liquidity on the XRP ledger, potentially encouraging them to bring more capital to the chain. The launch of this stablecoin could also be a significant step towards increasing institutional adoption of XRP.
Another notable event was the sale of 50 million XRP by Chris Larsen, Ripple's co-founder and Executive Chairman, worth approximately $175 million. Despite the sale, Larsen still controls an estimated 2.5 billion XRP, suggesting he has not significantly reduced his holdings. The exact reason for Larsen's sale is unknown, but the small impact on the float and his continued large holdings suggest it may not be a hasty exit.
The sale represented about 0.085% of the XRP float available for public trading. Even if all the sold tokens hit an exchange order book immediately, the sale would be a small percentage of the total XRP supply. XRP's price action following the sale indicates that it has resiliency, as it clawed back half the drop within 48 hours and remains in its uptrend this year.
The SEC courtroom duel with Ripple has been resolved, which removed a perceived cap on institutional adoption and opened the door for new capital to flow in. The resolution could potentially lead to increased institutional adoption of XRP. Taxes could be a reason for timed disposals, especially considering XRP's 440% gain over the past 12 months.
Moreover, the development of a new EVM sidechain allows for Ethereum smart contract developers to use their familiar programming language to develop apps while keeping settlement in XRP. This allows for the creation of apps on the XRP ledger using Ethereum smart contracts, further broadening the XRP ecosystem.
As of Aug. 8, XRP has increased by 44% over the past 30 days. With these developments, it appears that the XRP network is indeed gaining momentum, offering promising prospects for the future.
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