By
Tolu Ajiboye
April 24th, 2024
A huge sum of XRP was sent to one receiver’s address for a fee of 0.000012 XRP. The community is trying to guess the real reasons.
Our world is full of mysteries and the crypto space is not an exception. It has been revealed that three mega transactions were carried out in just a few minutes and a huge amount of XRP tokens were moved to one virtual currency address.
Following this piece of news the crypto community definitely has a good issue to discuss and to make guesses about possible reasons for such a step.
How It Happened
The first transaction was processed on Monday, November 27. Over 850 million XRP, the total value of which at the press time is more than $300 million dollars, was sent to the receiver’s address: rKveEyR1SrkWbJX214xcfH43ZsoGMb3PEv.
Just a few minutes later the same address received another transaction. Nevertheless, this time the amount was lower: approximately 750 million XRP.
But it still was not the end. Once again some minutes later the third transaction took place. Just the same address mentioned above received almost 1 billion XRP this time.
All in all, as a result of these three transactions that closely followed each other, the same account received nearly 2.6 billion XRP, the total value of which in the current market conditions is close to $910 million dollars.
An important detail that the fee for transactions was just 0.000012 XRP and it is less than 1 cent.
Such an unusual situation with a huge amount of XRP transacted has obviously caused a lot of discussions among the community. Some of the guesses are based on the assumption that such an enormous amount could be related to a desire of a cryptocurrency exchange to move digital assets to a cold storage wallet in order to ensure more security.
Possible Reasons
Though it is difficult to make any exact conclusions on the situation without any official comments or clarification from the Ripple company, the community has divided into two camps. Some of them strongly believe that these transactions look like a big institution has decided to purchase XRP.
At the same time, the second group supposes that it could be Ripple that needed funds and unloaded a huge amount of their asset.
Though Ripple hasn’t made any comments, the community couldn’t forget what was said by the company’s Chief Cryptographer, David Schwartz, in October. According to him, with a view to process bigger transactions on the Ripple ledger, an increase of XRP price is required. “The higher the price of XRP, the larger the payments Ripple can target,” added Schwartz.
While the community is making guesses, it’s worth mentioning that for the last several months XRP has been actively strengthening its positions. Though the entire market has been affected by the bearish trend, it hasn’t prevented XRP from becoming the second largest cryptocurrency on the global crypto scene by market cap.
To learn more about XRP coin, Ripple company and their innovative solutions, please check out our awesome guide.