Coinbase Conducts Large-Scale Internal Transaction for Optimal Custody Arrangements and Liquidity Safety

Coinbase has stirred up controversy with a recent transaction of 16.7 million XRP worth approximately $53.16 million. The massive move sparked curiosity across the XRP community, with many market observers left wondering about its implications.

According to tracking services, Coinbase initiated this internal transfer during morning hours on Monday. Initially, reports suggested that an external entity had deposited a substantial amount of XRP into Coinbase’s account. However, further analysis revealed that this was not the case. Instead, the company processed an internal transfer between two cold wallets.

The sending wallet, labeled 197, and the receiving wallet, Cold Wallet 6, are both part of Coinbase’s deep reserves. Each typically holds around 16.5 million XRP units. This move is simply a routine action aimed at optimizing custody arrangements, reducing hot wallet exposure, and maintaining liquidity safety.

As such, it appears that this large-scale movement did not affect the market supply or drive significant price action. XRP traded near $3.18 following the transaction, which is consistent with its recent sideways pattern. The current resistance remains at $3.30, while a breach could push the price toward $3.50 and potentially $3.70. If this resistance is not breached, the cryptocurrency may continue to follow its ongoing sideways trend.

In conclusion, Coinbase’s substantial XRP reserves remain intact despite this internal shift. It seems that such actions are an ordinary part of their operational process.

Source: coincentral.com