On January 1, 2024, Ripple unlocked another 1 billion XRP from escrow, a routine event in its monthly release schedule. While 80% of this sum was promptly re-locked, the remaining 200 million XRP were sent to Ripple’s spending account, raising concerns about potential market dumps.
The community is full of speculation, with members analyzing the potential impact of the coming XRP sales on XRP’s long-term value, and we will highlight key aspects to watch in the coming weeks.
Read Also: Data Shows Ripple Sold XRP Worth $104 Million in 3 Weeks, Double the Six-Month Average
Ripple unlocked 1 billion XRP in three transactions on New Year’s Day. The first transaction unlocked 100 million XRP ($61.14 million). The second saw Ripple unlock 400 million XRP ($244.56 million), and the third was 500 million XRP ($305.71 million).
Following the unlock, Ripple quickly re-locked 80% of the 1 billion XRP in pairs of 500 million XRP and 300 million XRP into wallets labeled Ripple (22) and Ripple (23).
Following these transactions, the payment firm engaged in several internal fund movements. Ripple (22) distributed its 500 million XRP, transferring 200 million XRP to Ripple (1), the company’s designated spending account, while the remaining 300 million were sent to another company-owned address, Ripple (11).
Notably, Ripple (11) then sent these 300 million XRP to an escrow account scheduled to release the funds on May 1, 2027. Similarly, Ripple (23) transferred its 500 million XRP allocation to Ripple (10), which also established an escrow account, locking the 500 million XRP until June 1, 2027. Currently, Ripple (22) and Ripple (23) have a combined 1 billion XRP.
While 80% was returned to escrow, 200 million XRP from each account landed in Ripple (1), leaving its total at 226 million XRP. It is crucial to remember that funds in Ripple (1) aren’t directly dumped onto exchanges.
Historically, before reaching exchanges, these funds are distributed to other accounts in smaller transfers. These funds have fueled concerns about Ripple dumping the 200 million XRP on the market.
Read Also: Ripple Reveals Timeline To End Sales of XRP Through Escrow Releases
Analyzing past behavior, “Ripple (1)” received a similar 200 million XRP last month and subsequently distributed those funds in four tranches to other accounts. These funds eventually reached centralized exchanges like Bitstamp and Bitso. With 226 million XRP currently residing in “Ripple (1)”, a similar distribution and eventual exchange listing is a distinct possibility.
Despite the concerns, pro-XRP lawyer John Deaton, revealed late last year that Ripple would not abandon XRP because of its massive holdings in escrow. These concerns are common but Ripple’s past behavior has shown faith in XRP.
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