The XRP Ledger (XRPL) community has witnessed the burn of a significant amount of DROP tokens on the network, sparking speculation.
XRPScan, an XRPL explorer, indexed the transaction yesterday, indicating that 10,000 DROP tokens were incinerated on the leading blockchain. According to the X post, the XRPL explorer urged the community to hold a “moment of silence” for the transaction.
A moment of silence for https://t.co/jyprxCMJcU @DropCoinXRPL pic.twitter.com/DmbzrDyzNs
— XRPScan (@xrpscan) October 28, 2024
Per the transaction details, the 10,000 DROP tokens were burned on October 18 at 06:56 UTC, incurring a fee of 0.000012 XRP. Despite the transaction occurring earlier this month, the broader XRP community knew about it recently following XRPScan’s tweet.
InFTF Exec Suggests Burn Was Deliberate
Expectedly, XRP enthusiasts took to the comment section to speculate on whether the burn was deliberate or a mistake. Commenting on the development, Thomas Silkjaer, Head of Analytics and Compliance at Estonia-based Inclusive Financial Technology Foundation (InFTF), suggested that the burn was deliberate.
The InFTF exec speculated that Drop token issuers might have deliberately initiated the transaction. Interestingly, XRPScan echoed 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 memecoin currently hosted on First Ledger, a crypto trading platform on XRP Ledger. It is currently priced at $5.07 per token, reflecting a 24-hour decrease of 17.44%.
This indicates that the 10,000 DROP tokens burned recently are valued at $50,700. At the time of its launch, DROP had a total supply of 1 million tokens. However, the figure has reduced to 989,000 DROPs, according to data from First Ledger.
Notably, DROP had reached a valuation of $10 million earlier this month. The team made this known in an October 26 tweet. However, DROP’s market cap has declined to $5.01 million at press time.
Potential Impact of XRPL-Based Memecoins on XRP
Meanwhile, the development coincided with an update from First Ledger regarding the potential impact of XRPL-based memecoins on XRP’s price.
In an X post yesterday, First Ledger emphasized that XRPL-based memecoins are bullish for XRP. The First Ledger team suggested that launching memecoins on XRPL might enhance XRP burns, dramatically reducing its overall supply and causing the coin’s price to surge.
The idea is that trading XRPL-based tokens, including memecoins, requires users to pay fees in XRP, which are automatically burned. First Ledger expects the growing interest in XRPL-based memecoins to boost XRP burns, potentially driving its price upward.
In the meantime, 12,964,929 XRP have been incinerated using XRPL transaction fees.
