On Friday night, according to U.S Securities and Exchange Commission filing, Ripple Labs has sold a considerate chunk of the stake in MoneyGram. From Nov 27th to Dec 4th, Ripple has managed to liquidate its position worth $15 million by selling MoneyGram’s 2,264,113 shares. Back in June 2019, Ripple commenced the partnership with MoneyGram. It went about investing $50 Million in the remittances giant. However, after one year of its investment, it is looking at possibilities of cashing out from the company.
MoneyGram’s stock value soaring high at $8.53 with an upward momentum dropped to 6.52 at the time of this publication. The news of Ripple’s sell-off has led to an instability in the market, thus leading to decline in share prices. MoneyGram is America’s payment company with a global network supporting the largest money transfers in the world. In a strategic partnership with Ripple, it aimed to utilize virtual asset XRP for cross-border remittances. However, Ripple has earned a fair share of profits from its investment due to the bullish phase in the crypto space. In a conversation, Ripple spokesperson said,
“Ripple is a proud partner in MoneyGram’s digital growth transformation. This is purely a judicious financial decision to realize some gains on Ripple’s MGI [MoneyGram International] investment and is in no way a reflection of the current state of our partnership,”
Ripple Spokesperson
Furthermore, Ripple shelled out $15.1 million in the second quarter of 2020 in what is to be called as “market development fees”. MoneyGram charges the same for its usage of RippleNet ODL for providing liquidity.
Ripple’s XRP surges amidst the crypto bull run.
In recent days, Ripple’s XRP gained consistent momentum in price due to various reasons. One of them being the Flare’s Spark token distribution that has instilled excitement in the XRP community. Over 41 exchanges, including Binance US arm, has extended support for the token distribution phase.
Additionally, Ripple’s CTO advocated about the democracy of public blockchains. In a Twitter statement, Ripple’s David Schwartz expressed that the community holds utmost importance in terms of decision making. The majority has the authority to burn the entire XRP if intended to do so. Ripple currently owns half of XRP’s supply in its escrow account. It’s no surprise that the price of XRP surges due to increased demand and limited supply.
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