Ripple’s Monthly XRP Unlock: Unveils Another 1 Billion XRP from Escrow
The post Ripple’s Monthly XRP Unlock: Unveils Another 1 Billion XRP from Escrow appeared first on Coinpedia Fintech News
Ripple releases 1 billion XRP tokens from escrow accounts in a routine procedure, bringing its escrow balance to below 40 billion XRP.
This move, worth approximately $610 million, is part of Ripple’s efforts to stabilize the XRP market, introduced in December 2017.
XRP’s market cap has increased by $5 billion since October 1, 2023, with XRP currently ranked fifth in the global crypto ranking with a valuation of $32.8 billion.
Ripple, a prominent cryptocurrency payment company, has released another 1 billion XRP tokens from its escrow accounts in a routine procedure. This move has brought Ripple’s escrow balance to below 40 billion XRP, as reported by the crypto whale tracking service Whale Alert. The transaction, worth approximately $610 million, was split into three separate transactions. This practice of releasing 1 billion XRP each month is part of Ripple’s efforts to stabilize the XRP market, which it introduced in December 2017.
According to data from CoinGecko, XRP’s market cap has increased by $5 billion since October 1, 2023, despite the release of 1 billion coins. Currently, XRP is ranked fifth in the global crypto ranking with a valuation of $32.8 billion. It is worth mentioning that XRP ended Q3 2023 with a market cap of $27.8 billion.
Ripple’s Commitment to XRP Market Stability
Ripple’s escrow system was introduced in December 2017 as part of an effort to stabilize the XRP market. As a result, Ripple locked 55 billion XRP in different escrow accounts with a plan to release 1 billion each over 55 months. However, the firm took further steps to stabilize the XRP market by locking back a significant portion of XRP shortly after unlocking the programmed 1B coins in previous months. At present, Ripple holds 39.9 billion XRP in its escrow accounts.
Ripple Criticized for Selling XRP to Fund Operations
Critics have accused Ripple of suppressing XRP’s price due to its monthly market sales. Jerry Hall, one such critic, stated that Ripple benefits from selling XRP monthly by using the funds to finance its business. He further argued that while XRP holders finance Ripple’s operations, the company does not reciprocate this effort.
In conclusion, Ripple’s latest token unlock has brought down its escrow balance to below 40 billion XRP. While this move has not surprised many due to its customary nature. It remains to be seen how Ripple will utilize the newly unlocked tokens and whether it will lock back some amounts while selling others in the open market.
Filed under: Bitcoin - @ December 1, 2023 8:12 am