The price of XRP experienced a decline on Wednesday following revelations by Ripple co-founder Chris Larsen regarding unauthorized access to his accounts. This disclosure coincided with findings by crypto investigator ZachXBT, indicating a potential hacking incident involving approximately 213 million XRP, valued at $112.5 million.
XRP Price Decline
Within the past 24 hours, XRP has seen a 4.4% decrease, with its value dropping to $0.50 by 10:30 a.m. ET, according to data from TradingView. This decline prompted the liquidation of over $4 million worth of leveraged XRP positions, predominantly longs, resulting in losses of approximately $3.8 million.
Total liquidations in leveraged crypto positions over the last day amounted to $150 million, as per Coinglass data. Long positions bore the brunt, accounting for $113 million in liquidations, while short positions totaled around $36 million.
Liquidations occur in derivatives markets when traders’ positions are forcibly closed due to insufficient funds to cover losses. This scenario arises when market movements unfavorably affect the trader’s position, depleting their initial margin or collateral. Bitcoin also experienced a 1.6% decrease in price within the same timeframe, trading at $42,916 by 10:30 a.m. ET.
Revelations of unauthorized access to personal accounts by Ripple’s co-founder, coupled with concerns of a significant XRP hacking incident, have led to a decline in XRP value and subsequent liquidations in leveraged positions. These developments underscore the importance of vigilance and security measures in the crypto space.