The XRP Ledger (XRPL) community has witnessed a large number of DROP tokens being written on the network, sparking speculation.
XRPL explorer XRPScan indexed transactions yesterday, showing that 10,000 DROP tokens were incinerated on major blockchains. According to XPost, XRPL explorers urged the community to observe a “silence of silence” over the deal.
A moment of silence for https://t.co/jyprxCMJcU @DropCoinXRPL pic.twitter.com/DmbzrDyzNs
— XRPScan (@xrpscan) October 28, 2024
According to the transaction details, 10,000 DROP tokens were burnt on October 18th at 06:56 UTC, resulting in a fee of 0.000012 XRP. Although the transaction took place earlier this month, the broader XRP community recently learned of it following a tweet from XRPScan.
InFTF executives suggest burn was intentional
As expected, XRP enthusiasts took to the comments section to speculate whether the post was intentional or a mistake. Commenting on the incident, Tomas Silkjar, head of analysis and compliance at the Estonia-based Inclusive Financial Technology Foundation (InFTF), suggested that the burns were intentional.
https://x.com/thecryptabasic
InFTF executives speculated that the issuer of the drop token may have intentionally initiated the transaction. Interestingly, XRPScan expressed a similar sentiment, stating that the account was recently mentioned on First Ledger’s About page.
DROP Current Performance
For context, DROP is an XRPL-based meme coin currently hosted on First Ledger, a crypto trading platform on the XRP Ledger. The current price is $5.07 per token, reflecting a decline of 17.44% in 24 hours.
This shows that the recently minted 10,000 DROP tokens have a value of $50,700. At launch, the total supply of DROP was 1 million tokens. However, this number has decreased to 989,000 DROPs, according to First Ledger data.
Notably, DROP reached a valuation of $10 million earlier this month. The team made this clear in a tweet on October 26th. However, DROP’s market capitalization has decreased to $5.01 million at the time of writing.
Potential impact of XRPL-based meme coins on XRP
Meanwhile, this development coincided with an update from First Ledger regarding the potential impact of XRPL-based meme coins on the price of XRP.
In yesterday’s X post, First Ledger highlighted that XRPL-based meme coins are bullish for XRP. The First Ledger team suggested that launching meme coins on XRPL could accelerate the burnout of XRP, dramatically reducing the overall supply and driving up the price of the coin.
The idea is that to trade XRPL-based tokens, including meme coins, users will have to pay a fee in XRP, and that fee will be baked in automatically. First Ledger predicts that increased interest in XRPL-based meme coins could fuel XRP burnout and push prices higher.
During that time, 12,964,929 XRP was burned using XRPL trading fees.
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