XRP is a quite special cryptocurrency. Many people struggle to understand its actual use cases, and its ecosystem is not very apparent, yet it consistently ranks among the top cryptocurrencies by market capitalization.
Interestingly, its team and founder have been selling coins for years, and they still manage to thrive, even becoming stronger, with the coin price not falling but rising instead.
This time, because Trump specifically mentioned including it in strategic reserves, XRP has skyrocketed.
All of XRP's tokens are controlled by Ripple Labs, with the company holding 80% and the founders holding 20%.
In 2017, Ripple Labs locked up 55 billion XRP and has been selling up to 1 billion tokens per month ever since. The founders have even publicly admitted that the company’s high annual profits primarily come from selling coins.
Recently, XRP's whales have started massive sell-offs, with daily selling volumes exceeding 120 million USD. Since the price surged 500% in November 2024, large holders have been actively offloading their assets. Data indicates that XRP seems to be in a large distribution phase.
The whales clearly do not view being included in strategic reserves as a long-term benefit, opting instead to cash out at high prices.
XRP's business model is straightforward and aggressive, relying on coin sales for its survival, yet the market always seems to find buyers.
Although Trump's endorsement has caused a significant short-term spike, the whales' selling behavior raises doubts about its long-term prospects.
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