Ripple, the blockchain-based payment network, is selling off large quantities of its in-house payment intermediary, XRP (XRP-USD). Indeed, in a recent quarterly XRP Markets report, Ripple disclosed selling $361.1 million worth of the XRP crypto in Q1 of this year, a notable acceleration from the $226.3 million sold in Q4 2022.
Just because Ripple has been selling off XRP does not necessarily mean the end is near, however.
“Since 2020, Ripple has sourced XRP from the open market to ensure there is a sufficient supply of XRP available for our growing [on-demand liquidity] business,” Ripple said. “We continually strive to minimize undue market impact with our purchases by, for example, limiting how much and from whom we purchase XRP.”
It seems the net sales were related to balancing the supply of XRP as it pertains to Ripple.
Ripple Sells XRP Crypto as Coin Enjoys Red-Hot Year
Lately, the XRP crypto has undeniably been thriving. The coin is up more than 40% this year as one of the leaders of this year’s crypto resurgence.
The No. 6 crypto by market capitalization, XRP hasn’t exactly been able to avoid controversy. Since 2018, Ripple has been caught in a seemingly endless U.S. Securities and Exchange Commission (SEC) probe, all originating from Ripple’s registration as a for-profit entity. The SEC has alleged that, due to this status, its launch of XRP was an unregistered security offering. Ripple maintains that instead, XRP is a digital currency.
Currently, the lawsuit surrounding XRP is in the hands of the Southern District of New York. A verdict is expected to be handed down soon enough, but until then, XRP remains a fast-climber with more than its fair share of baggage.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.