After 2.3 years of holding, a whale has moved 26.5 million XRP – worth $67.65 million – into Binance, locking in a profit of $56.87 million. Onchain Lens data shows that between April 2022 and November 2022, this investor accumulated 25.12 million XRP from Binance at an average price of $0.429, investing $10.77 million.
As reported, these holdings were later added to a liquidity pool with BNB, bringing in an extra 1.38 million XRP. Now, after a long wait, the investor has chosen to exit – right as major policy changes around the third biggest cryptocurrency are taking shape.
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The move comes just a day after the U.S. government finalized documents outlining the handling of its Digital Asset Stockpile and the creation of a Bitcoin Strategic Reserve. The reserve is controversial to say the least.
Controversy
Bitcoin is protected by a no-liquidation policy, while other digital assets, including potentially XRP, remain exposed to potential sell-offs at the Treasury’s discretion. There is no restriction preventing the government from offloading XRP should it ever enter the stockpile.
From this point of view, the whale’s Binance deposit may suggest that long-term XRP holders are aware of the uncertainty surrounding its future treatment. While the investor’s move is probably profit-driven, it goes along with growing concerns over whether XRP, even if held by the government, is safe from forced liquidations.
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Crypto markets have seen policy changes impact price action before, and this may be no different. The whale’s decision to cash out now, if this is indeed it, could indicate broader skepticism toward XRP’s much hyped stance as an asset of the Strategic Reserve. Whether this signals a larger trend remains to be seen.
Source: https://u.today/long-term-xrp-whale-hits-worlds-largest-exchange-details