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Wednesday, June 12, 2024
HomeCryptoWhy is FTX selling millions of XRP and BTC?

Why is FTX selling millions of XRP and BTC?

According to account X, these addresses transferred a staggering $12 million worth of cryptocurrency. This includes a total of 5 Bitcoins [vBTC] wrapped worth about $7 million. With that, about 10 XRP [WXRP] Wrapped worth around $5.2 million was also transferred into Binance, a prominent cryptocurrency exchange.

A wrapped version of a cryptocurrency is a digital equivalent on a separate blockchain that has a fixed value. XRP’s wrapped token allows its holders to interact with decentralized applications [dApps] on Ethereum.

The latest transfer to Binance could indicate a possible strategic move to liquidate or redistribute assets amid FTX’s ongoing financial landscape. However, some others believe that it may be a customary reallocation of assets. Through that, the company will meet its operational needs.

Analysis of FTX’s past holdings

Looking back to September, the exchange is said to have held over 225 million XRP. The recent transfer of 10 million WXRP represents less than 5% of FTX’s declared XRP holdings. As a result, the exchange continues to own a notable amount of XRP. Additionally, the timing of these transactions is noteworthy because FTX is going through bankruptcy proceedings.

Wavy whales make a big move

Unlike FTX, whales in the market appear to be holding onto their XRP. Reports shows that wallets holding 100 million tokens or more are increasing their holdings. This follows XRP’s recent 6% decline since the beginning of June. At the time of writing, the asset was trading at $0.4866, reflecting a 2.86% daily decline.

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.


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