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There has been controversy surrounding Ripple over the last week or so as accusations that the company is selling off its tokens gather momentum.
Members of the Ripple community have threatened to institute a hard fork due to this issue.
Last week, Whale Alert flagged a large transfer of Ripple’s XRP token from the company’s escrow account. 500 million XRP, worth about $130 million at the time, was moved during the transfer.
There was an uproar in the Ripple community as its members accused the company of dumping its tokens and intentionally driving prices down.
XRP is currently trading under $0.30, and holders of the currency are unhappy with this performance.
This price has affected the overall trade of XRP as fewer people are engaging with the token. At a stage when the company would be hoping that traders would explore all the options available such as to buy XRP with PayPal, there is a slow down in the trade of the token.
Another large Ripple transfer made
Whale Alert has flagged another massive transfer of Ripple’s XRP. Ripple Labs transferred 100 million XRP from their wallet to Jed McCaleb, the company’s co-founder.
This transfer has raised concerns among the Ripple community as it seems like the company is continuing with the sell-off of its native token. The alleged dumping of the token will have a negative effect on the token’s price, and it is expected that the token will lose ground again this week.
Jed McCaleb has been selling off his own massive XRP holdings over the years and Ripple has tried to stop him from doing so.
Ripple has gone as far as suing their co-founder to block him from dumping the token. McCaleb is the currency CTO of Stellar and the founder of the MtGox Bitcoin exchange.
Ripple has XRP holdings of about 55 billion XRP and the firm is allowed to sell 1 billion of these a month.
The proceeds from the sale of these tokens are supposed to go towards operational costs for the network and marketing programs to bring more people into the XRP community. The company has recently been dumping large amounts of its tokens, much to the dismay of its investors.
Hard fork on the horizon?
A petition was started by members of the Ripple community with the aim to stop the company from selling off its tokens. There are over 3,500 signatures on the petition to date, and more signatures are expected to be added to it over the course of the week.
There have been threats of a hard fork from some members of Ripple’s community who see that as the only solution if the dumping of tokens continues.
Currently, Ripple trading is low as the XRP token’s price continues to plummet. XRP has fallen by 45% from its 2019 high of $0.46.
For the past few months, the token has been hovering around the $0.26 mark. Many members of Ripple’s community came in around 2017 when the token reached its all time peak of $3.23.