XRP Ledger (XRPL) validator Vet recently pointed out an unusual transfer that Ripple made, based on the kind of account that the firm transferred the funds to. This comes amid plans to raise up to $1 billion to set up an XRP treasury company.
Ripple Transfers Makes a Surprising $500 Million Transfer
Vet mentioned in an X post that Ripple transferred $500 million worth of XRP to a fresh account, which he noted is not in escrow and has no multi-sig or any other account settings. He described the lack of multi-sig as surprising, given the account value.
XRP Scan data also shows that Ripple indeed made the transfer, sending 220 million XRP to this fresh account. Vet further explained that creating fresh accounts for XRP transfers is “nothing special” for the crypto firm, as there are many known and unknown accounts in operations.
However, what he was “genuinely surprised” about was the account’s lack of a multi-sig. Notably, this transfer has nothing to do with the crypto firm’s monthly 1 billion XRP unlocks, as they had unlocked those coins earlier in the month, some of which they relocked in escrow.
Meanwhile, this move comes amid Ripple’s plans to raise up to $1 billion to set up an XRP treasury firm. As CoinGape reported, the crypto firm plans to contribute some of its XRP holdings to the proposed digital asset treasury (DAT) company, which will hold the coins as part of its reserve.
As such, this transfer may have been their contribution to the proposed treasury initiative. Ripple currently holds 41.85 billion XRP, including those in escrow, representing just over 35% of the token’s total supply.
“Distribution Is The Name of The Game”
In another X post, Vet opined that the proposed XRP treasury firm is a good distribution mechanism. He explained that, just as with the ETFs, XRP bought by those vehicles from Ripple’s holdings also translates into more XRP that won’t hit a crypto exchange immediately, suggesting this was a positive for the XRP price.
The XRPL validator also noted that market participants are not gaining, as these entities won’t buy on exchanges. However, they also don’t have to face significant selling pressure if they can find entities that want to hold XRP long term.
As such, Vet believes that it is best if Ripple can distribute XRP to more entities with the mindset to hold these coins for the long term. He added that the key part is to find committed holders.
Source: https://coingape.com/ripple-makes-unusual-500m-transfer-amid-1-billion-xrp-treasury-plans/
