- Our updates on Ripple include that at the end of November 2020, the US tech firm Ripple Labs, Inc. sold its 33% stake in MoneyGram.
- After selling these shares, Ripple Labs will have 2.24 million shares or 3.1% of MoneyGram’s stakes. Including the additional warrant shares, the total stake would be 11%.
- The price of Altcoin XRP is yet to break the $1 ceiling just yet despite the upcoming Flare Network’s Spark token airdrop scheduled to launch in mid-December.
Ripple Sells its 33% Stake (worth $15 Million) in MoneyGram
At the end of November 2020, Ripple sold its 4 million MoneyGram shares. It means the company has given away nearly 33.3% of its stake.
After selling off this stake, Ripple will still have 2.24 million shares or 3.1% of MoneyGram’s outstanding shares. Consider the additional warrant shares; the total stake would go up to 11%.
Between Nov. 27 and Dec. 4, after filing with the Securities and Exchange Commission, Ripple sold 2,264,113 shares of MoneyGram. Rippled gained a total of $15,303,792.60 from the sales.
If Ripple sells all of its 4 million shares, it will earn approximately $30 million at the current market prices, gaining nearly 50%.
The decision of selling these shares by Ripple appears to be motivated by the surging price of MoneyGram’s share and to cash out a large chunk of the stake after buying them at a premium price of $4.10 in 2019.
Earlier in November 2019, Ripple invested $50 million (8.6% stake) to buy MoneyGram’s share as part of its strategic partnership. The investment added up to just about 12.2 million shares, including the additional warrant shares.
At the close of sales on Nov. 27, MoneyGram’s shares were down to 4.8% at the price of $7.42 on the NASDAQ. The stock has risen to 260% year-to-date, increasing from $2.06.
Can Flare Network Airdrop Help Break the Barrier?
Altcoin XRP has been doing reasonably well in the crypto market for some time. However, the price of XRP still has not been able to break the $1 ceiling just yet despite the upcoming Flare Network’s Spark token airdrop scheduled for mid-December.
The US tech firm Ripple Labs, Inc. still holds the stake of 48 billion XRP, which mostly played down its relationship to token during the last few years, now may change their approach due to the recent price surges.
In the recent few weeks, XRP/USD has notched up some impressive numbers as the token price has soared from $0.22 to $0.80.
The price movement has broken XRP’s downtrend of several years since January 2018. Besides, a relatively smaller price movement happened in August 2020, when the price of XRP went up from $0.16 to $0.33.
After this significant price movement, XRP could correct its previous price resistance at $0.22. This correction provided bullish support, post-that, the significant price surge to $0.80 occurred, rallying as high as $0.90 on Coinbase in November 2020.
Before We Go
The cryptocurrency market has been in the limelight during the past several months with significant price surges in Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), and others.
Particularly, the price surge of Bitcoin has been associated with Wall Street and major financial institutions raving about this new asset class and its digital store of value. Now, the altcoin XRP too has been showing a promising upward trend, which is good news for investors.