A blockchain address belonging to Ripple has moved 80 million XRP worth $48 million, leading to speculation on where the fund is headed.
The transaction, captured by blockchain tracker Whale Alert, occurred in the early hours of Tuesday, November 28. It came from a Ripple-owned wallet. The address currently holds a balance of 136 million XRP and is often used by Ripple to transfer millions in XRP to other addresses.
Meanwhile, on the receiving end was another address activated by Ripple. The address is used to disburse smaller amounts in tens of thousands of XRP, and it currently holds 85 million XRP as a balance.
The latest large transfer from Ripple has caught the eye for a number of reasons. For one, it has given rise to speculation on where the money is heading.
Ripple Moves XRP for ODL or SEC Settlement?
Speculations abound in the Ripple community on the reason for the latest transactions. The nature of the transfer and the history of the address in disbursing smaller amounts suggests that the XRP coins are used for the project’s on-demand liquidity (ODL) network, which facilitates global money transfer. Ripple’s operations typically require a periodic transfer of such large amounts.
Another speculation is that the transfer may be channeled towards a potential settlement with the United States Securities and Exchange Commission (SEC) in a long-standing lawsuit. Although the above is merely speculation, a similar high-profile transfer was noticed en route to Binance’s multi-billion settlement with U.S. authorities.
In either case, the Ripple community will be keen for an outcome that does not involve the liquidation of the moved coins. XRP’s price has struggled alongside the rest of the crypto market in the past week. XRP currently currently trades at $0.598, dropping 2% in the past seven days.