It is no longer news that Ripple, the San Francisco-based cross-border payment firm, unlocks 1 billion XRP from escrow on the first day of every month. It is also a custom to lock back about 80% of the unlocked tokens after a few hours.
However, any token unlock from escrow on other days of the month can be termed questionable. Such a scenario has brought concerns to the fold of the XRP army. It raises the possibility of fresh sell-offs.
Read Also: Whale Alert: 900 Million XRP Unlocked At Escrow from Unknown Wallet
Ripple Unlocks 400 Million XRP from Escrow
According to Whale Alert, the tracker of large transactions of cryptocurrencies from one wallet to another, Ripple, the major distributor of XRP, has unlocked 400 million XRP worth $217.4 million from its whopping escrow holdings.
Based on Whale Alert’s timestamp, the massive transaction was initiated on the 25th of February 2024, at 03:26:31 UTC. The reason for this release is still being speculated by the XRP community members, who are most times perplexed by the frivolous activity of the firm, which is rumored to cause XRP’s underperformance in terms of price.
🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 400,000,000 #XRP (217,409,122 USD) unlocked from escrow at #Ripplehttps://t.co/nfzy5ulSuA
— Whale Alert (@whale_alert) February 25, 2024
As expected, the report received tons of reactions from the XRP community. There is speculation that these unlocked tokens are either a week early or three weeks late.
It is worth noting that this unusual event follows a February transaction where only 500 million XRP was locked back in escrow, unlike previous months.
Confusing Memo Attached to the XRP Transaction
As earlier stated, the unusual timing of the event has sparked speculation within the XRP community. Another confusing thing in the transaction is the memo attached to it.
The memo written cryptically questions the necessity of the transaction since there was an escrow release on the first day of February. The memo also contains shout-outs to two personalities, Hodor and John Deaton.
“February escrow was not executed? Hmm !!TRWBT!! Welcome back Hodor!! John Deaton!!”
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: Ripple Unlocks 1 Billion XRP Worth About $514 Million. How Would This Impact XRP? Details
Why Monthly Escrow Release?
The mechanism of unlocking and locking XRP on the first day of every month is designed to provide transparency and profitability to the supply of XRP, ensuring that a certain amount of XRP is sold in the market at a designated time.
Ripple also claims it uses the unlocked tokens to fund its operation, which covers development projects and investments.
Follow us on Twitter, Facebook, Telegram, and Google News.
