$50M in XRP to the Feds? How Many Ripple Tokens You Need to Join the 1% Club

The XRP price had a solid week with around 6% pump which means it's now trading around $2.17. Considering Ethereum actually lost 4.5% in price during the same period, it's safe to say XRP holders can be fairly happy with how this week went.

The price of XRP has had a good week with about 6% in price appreciation which means it’s now trading at around $2.17. Especially considering that Ethereum saw a price decline of 4.5% during the same period, it’s safe to say that XRP holders can be fairly happy with how this week went.

Now, one of the pro-XRP crypto analysts EDO FARINA who has been regularly covering this token on X, also made a viral video to his 35k subscribers on YouTube. In this video, Farina is discussing how the US government might be getting $50 million in XRP.

Recently, Ripple CEO Brad Garlinghouse revealed that the SEC and Ripple have reached a settlement in their lawsuit. As part of the settlement, Ripple will pay a fine, which is likely to be a significant sum. Given the extensive legal battle and the potential implications of the case, it's no surprise that the rumors of a large settlement amount have been circulating.

At today’s price of $2.17, that’s about 23 million XRP tokens. This would make the US government one of the biggest XRP holders in the world. They might even join the top 0.01% of all XRP wallets. Right now, only 638 wallets in the world have more than 5 million XRP.

This transfer is interesting because it shows the government getting XRP without buying it directly. In his video, Farina speculates that XRP might already be in government hands thanks to some secret agreements. These deals with foreign institutions could be used to create a new system for moving money internationally. But these pacts might stay secret until the government is ready to announce them.

Some people think this could mean XRP might become a new global reserve currency. And the government getting XRP could be the first step toward this bigger role.

Why Would The Government Want XRP?

The main reason would be to use XRP as a bridge currency. Like how central banks hold foreign money in their reserves, the government might be collecting large amounts of XRP. It could replace the old system of pre-funded accounts for sending money across borders, which becomes useful when institutions in different countries need to transfer funds quickly and efficiently.

If XRP becomes a tool for global payments, then we could see the Federal Reserve adding it to its balance sheet. This would be a huge sign that big institutions are starting to use XRP.

Farina also covers what makes someone a top XRP holder. If you have 2,500 XRP then you’re in the top 10% of all holders. While to reach the top 5% you’ll need to hold at least 8,970 XRP. And if you want to join the exclusive 1% club then you’ll need around 51,000 XRP tokens.

In his video, Farina suggests that XRP could play a pivotal role in the future of finance as the world moves toward a more interconnected and digital economy. He covers the rumors of a pending $50 million payout to the Feds in XRP.

According to his estimations, at the current market price of $2.17, that sum would amount to approximately 23 million XRP tokens. At present, only 638 wallets on the XRPL hold a balance of 5 million XRP or more.

If the Feds were to receive the payout at today’s prices, they would be ranked among the top 0.01% biggest XRP holders.

However, Farina points out that the transfer is likely to take place at a lower price than the current market rate. Moreover, he speculates that the Feds might already be in possession of XRP thanks to a secret pact with a foreign institution.

Earlier this year, Ripple CEO Brad Garlinghouse hinted at the possibility of the US government investing in crypto in the coming year.

In March, Garlinghouse shared his thoughts on the future of finance at the Paris Impact Day Festival. During his discussion with Le Web3 co-founder Jerome Njобn in Paris, Garlinghouse suggested that the government might invest in crypto in 2024.

According to Garlinghouse, the government is already investing in foreign institutions and central banks. He further noted that the US is a "net creditor to the world."

When asked which crypto the government might invest in, Garlinghouse replied, "Maybe it will be Bitcoin or an investment in a crypto fund."

Despite his interest in seeing the government invest in crypto in 2024, Garlinghouse doesn’t think it will happen.