Ripple Reserves 470 Million XRP for Sale, Marking Largest Monthly Dump in 7 Years
The post Ripple Reserves 470 Million XRP for Sale, Marking Largest Monthly Dump in 7 Years appeared on BitcoinEthereumNews.com.
Ripple is deviating from its usual escrow pattern by reserving 470 million XRP tokens for sale, the largest monthly offload in seven years. The move ushered in concerns over XRP’s market stability. Ripple is causing worry with its latest move, reserving an unprecedented 470 million XRP for sale. The reserve marks the most significant monthly release since 2017. Ripple Doubles its Reserve Volume Ripple, the core developer of the XRP Ledger and largest XRP holder, unlocked 1 billion XRP tokens earlier this week. Ripple unlocks 1 billion tokens each month but reserves a portion for sale to fund operations, usually 200 million tokens. On November 1, Ripple deviated from its standard pattern by doubling its total reserve to 470 million, marking its largest monthly sell-off in seven years. The move is notable given Ripple’s ongoing legal battles, which have raised concerns among investors as the sell-off could put downward pressure on XRP’s price. The doubled reserve is even more worrisome as it comes just days before the US Presidential election, as political undercurrents could play havoc with XRP’s future price. Ripple’s XRP Escrow Ripple has operated a structured release mechanism to control XRP’s supply and prevent market oversaturation since 2017. The process, known as escrow, involves unlocking 1 billion XRP, re-locking a portion, and reserving a certain amount for selling activities. When Ripple initiated the practice, it locked 55 billion XRP (55% of the total supply) into a series of escrows set to be released over 55 months. These escrows are on the ledger itself, and the ledger mechanics, enforced by consensus, control the monthly release of the XRP. Of the 1 billion XRP released each month, around 200 million is reserved for sale to fund its operations and the remainder is re-locked in long-term escrow. November’s reserve of 470…
Filed under: News - @ November 4, 2024 1:23 am