Ripple Hack Triggers XRP Sell-Off! Market in Freefall as 200M Tokens Vanish

Ripple Hack Triggers XRP Sell-Off! Market in Freefall as 200M Tokens Vanish

The post Ripple Hack Triggers XRP Sell-Off! Market in Freefall as 200M Tokens Vanish appeared first on Coinpedia Fintech News

In the midst of a crypto whirlwind, Ripple’s XRP faced a major setback when the wallet of one of its co-founders got hacked, resulting in the disappearance of over 200 million XRP. This startling revelation, brought to light by cybersecurity analyst ZachXBT, not only triggered a surge in XRP token sales but also exposed significant security gaps in the crypto market.

Read more about the impact below – remember, it could affect you too.

Understanding the Fallout

Following the breach, blockchain analytics firm Kaiko reported a net sell-off of almost 100 million XRP, mainly on exchanges like Binance and OKX. Despite attempts by these platforms to freeze the hacker’s accounts, the damage was done, causing a noticeable drop in XRP’s market cap.

The report delves into XRP’s cumulative volume delta (CVD), a metric showing the number of participants buying and selling. On Jan. 30, despite a positive CVD as users acquired more XRP, especially on Binance, the coin’s price still fell by 4.58% due to market turbulence. Struggling to stay above the critical support level of $0.55, XRP faced bearish pressure, possibly signaling a downward trajectory toward $0.37—an immediate consequence of the hack.

Also Read: Ripple vs SEC: Could a $10 Million Ripple Settlement Finally Resolve the XRP Lawsuit?

Panic Selling and Ripple’s Decline

Interestingly, despite the initial buying signal, XRP’s CVD plummeted, particularly on exchanges like Binance and OKX, where users continued to offload their XRP holdings. This decline persisted until ZachXBT shed light on the hack affecting Ripple’s chairman, Chris Larsen.

The hack targeted Larsen’s wallet, with the stolen XRP moved to centralized exchanges like Binance, HTX, OKX, MEXC, Kraken, and Gate.io. Most of the stolen XRP was converted to other cryptocurrencies, causing panic selling and a significant drop in XRP’s CVD.

All Hope May Not Be Lost… Yet

Despite a slight recovery on Feb. 2, XRP’s CVD remained below average, with Binance and OKX seeing the most significant sales. Binance managed to freeze $4.2 million worth of XRP linked to the hack. However, ZachXBT revealed that the hackers successfully sold most of the stolen XRP, with massive Bitcoin withdrawals totaling $73.3 million, mainly from HTX, Gate.io, and Kraken.

ZachXBT suggests these withdrawals include XRP assets converted during the Larsen hack. Later, some of these Kraken funds were routed to a Bitcoin mixer, showcasing the ripple effect of the hacking incident on XRP and the broader crypto market.

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