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Why are the Whales transferring 100,000,000 Ripple XRP?

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While the eyes of the world are on the Ukraine military operation, the sanctions against Russia continue to rain down. Companies like McDonald’s, Twitter, Nike and others decide to sanction the Russian state, by leaving the country, or by blocking their services. For some banks , the penalties are harsher, in fact, Europe has decided to ban some banks from the SWIFT payment system. 

 

It is in this context that, according to WhaleAlert, a whale transferred 100 million XRP, or $76 million, to a wallet. Is it a way of circumventing sanctions or information that we don’t have?

  • The Ripple company and its XRP coin
  • A possible response to this transfer
  • Alert and maneuver

Ripple, a company at war with the SEC

Ripple was created to enable the creation of a more secure and less expensive payment network . The goal is to connect different banks and financial institutions so that they can transfer money between them in real time. Ripple aims to be a top notch network. The beginning of 2016 was difficult for the company. The company lost money, following an initial lawsuit, and had to find a few investors willing to spend millions. The SEC , the market regulator, has filed a complaint against Ripple to request additional information about its activities. They suspect possible price manipulation in certain markets.  Rippleis therefore in a bad patch and the trial, decisive for the universe of cryptocurrency , is still not over.

XRP was created in 2013, at the initiative of Ripple and in collaboration with IBM . This crypto is used to make international transactions all over the world. Users initiate transactions and the Ripple network  verifies and validates them. One of the ways to validate transactions is through the Internet of Things (IoT) consensus system.

 

Over $76 million transfer

While the Russians take care of the Ukrainian case. Here comes a transfer of 100 million XRP,  for a total of more than 76 million dollars.

 

 

Even more surprising, this same wallet , redistributes by smaller sums to other wallets . It would seem that these transfers come from a private investor, but we are not sure. What is certain is that these movements may raise questions in view of the poor performance of XRP and the ongoing lawsuit. Currently,  XRP is at $0.79, a difference of more than $1 with its ATH

Ripple is truly a direct competitor to SWIFT which is the dominant payment system in banking. We could therefore ask ourselves these all legitimate questions: Is this a way foroligarchs to circumvent the SWIFT system ? Is it a method to repatriate funds that are in banking systems hostile to the Russians? We have already seen the seizure of a yacht owned by a billionaire, and this kind of measure could increase over time.

The future for Ripple and its XRP

Despite its dealings with the SEC , the company continues to grow, and undertakes new partnerships such as with Modulr, a payment solutions provider in England. They even claim to have reached a valuation of $15 billion. CEO Brad Garlinghouse even explains to us that Ripple has never been in such good financial health, even suggesting a possible going public. Now the price of XRP depends on rumors, news, general market situation and BTC, like the rest of the crypto-sphere. This transfer could very well also be information that we do not yet have in our possession. As the great Warren Buffet would say “Buy the rumor, sell the news.”
However, we hope that if Russians use this system, it will not affect the company, nor the price of the token. 

 

What about this more than astronomical transfer? Is this a harbinger of a price rally? Or a way for some to circumvent economic sanctions? Nobody really has the answer, we can only say that despite the trial with an uncertain outcome, XRP still has a bright future ahead of it. Whether to circumvent sanctions that may increase, for certain countries or as a solution for money transfers and payments with very little cost. Ripple can still count on a close-knit community and its technology. Top analysts already see global central banks taking inspiration from Ripple to create their own private cryptocurrencies. We will therefore follow all these developments with interest.

 

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