As we enter a new month, Ripple has released another 1 billion XRP from escrow. This monthly XRP release is part of a standard process, and this release brought Ripple’s XRP holdings down to 39.9 billion XRP.
Despite apprehensions in the community about the potential impact on XRP’s price, the digital asset has demonstrated resilience, rising by 1.12% to $0.6101 over 24 hours.
To stabilize the XRP market, Ripple implemented an escrow system in 2017, locking 55 billion XRP in escrow. The company has been releasing 1 billion XRP every month since then, with plans to release tokens for 55 months.
However, Ripple has taken additional measures to maintain market equilibrium. The company often repurchases a huge sum of the released tokens. Everyone expects this to play out every month, exactly like last month’s release.
Ripple’s escrow system is designed to gradually release XRP tokens into the market, preventing a sudden influx that could destabilize the price. The company’s repurchase and re-locking of XRP tokens further demonstrate its commitment to market stability.
Whale Alert (@whale_alert), a prominent whale tracking platform on X, reported these transactions.
Ripple released 200,000 XRP ($120.4 million) in the first transaction, and 300,000 XRP ($180.6 million) in the second. The third transaction saw the blockchain company release 500,000 XRP ($301 million) to complete 1 billion XRP.
Despite Ripple’s efforts, some critics argue that the monthly XRP sales stifle the token’s price, asserting that Ripple profits from these sales to fund its operations, while XRP holders do not receive reciprocal benefits.
Ripple has always maintained that the escrow system and monthly sales are crucial for ensuring the long-term growth and stability of XRP. The company believes that a controlled release of XRP is preferable to a sudden influx of tokens that could destabilize the market.
Despite Ripple showing commitment to XRP time after time, many still criticize the company’s escrow practice. Any whale transactions usually spark speculations of a planned selloff by the company.
However, John Deaton, a prominent attorney in the crypto community recently shared his opinion on why Ripple would not abandon XRP and the XRP community, citing the company’s gargantuan XRP escrow holdings.
Follow us on Twitter, Facebook, Telegram, and Google News
Gary Gensler, the current Chair of the U.S. Securities and Exchange Commission (SEC), has held…
In a recent post on X, crypto analyst EGRAG CRYPTO presented a bold prediction regarding…
The cryptocurrency market is exhibiting a strong bullish tendency, with Bitcoin (BTC) and Ethereum (ETH)…
As the XRP price falters, investors are beginning to find other options. Recent shifts in…
With cryptocurrency adoption on the rise, digital assets are becoming integral to global finance. For…
Crypto market analysts have made bold assertions about the potential of FX Guys ($FXG) to…