Why is FTX Selling Millions of XRP and BTC?

On Jun 11, 2024

The cryptocurrency sector is one of the most dynamic industries. The market is filled with big movements, hacks, court hearings, and major price fluctuations on a daily basis. Aligning with this trend, now defunct cryptocurrency exchange, FTX and its sister firm, Alameda Research have once again made headlines. PeckShieldAlert has identified an array of substantial transactions related to these entities.

According to the X account, these addresses transferred a staggering $12 million in cryptocurrency. This included a total of 5 wrapped Bitcoin [vBTC] valued at around $7 million. Along with this, about 10 wrapped XRP [WXRP] worth about $5.2 million were also moved into Binance, a prominent cryptocurrency exchange.

#PeckShieldAlert #FTX/#Alameda labeled addresses transferred ~$12m worth of cryptos out
~5 $vBTC (worth ~$7m) were transferred to #wintermute, ~10m $WXRP (worth ~$5.2m) were transferred to #Binance pic.twitter.com/rV04yuyQsI
— PeckShieldAlert (@PeckShieldAlert) June 11, 2024

The wrapped version of cryptocurrencies is an equivalent cryptocurrency on a separate blockchain with a fixed value. XRP’s wrapped token allows its holders to engage with decentralized applications [dApps] on Ethereum. The latest transfer to Binance could indicate a possible strategic maneuver to liquidate or redistribute assets amidst FTX’s ongoing financial slump. However, a few others suggest that it could be a routine reallocation of assets. Through this, the firm would meet its operational needs.

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Analyzing FTX’s Previous Holdings

Looking back at September, the exchange reportedly held more than 225 million XRP. The recent transfer of 10 million WXRP represents less than 5% of FTX’s declared XRP holdings. Therefore, the exchange continues to possess a notable amount of XRP. Additionally, the timing of these transactions is noteworthy as FTX has been navigating through bankruptcy proceedings.

Ripple Whales Make Big Moves

Unlike FTX, whales in the market seem to be holding on to their XRP. Reports suggest that wallets that are holding 100 million or more tokens have been increasing their holdings. This comes following XRP’s recent dip of 6% since the beginning of June. At press time, the asset was trading at $0.4866, reflecting a 2.86% daily drop.

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Also Read: XRP Avoids Extreme Bearish Cross Buildout: Can Ripple Breach $1 Now?

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