Ripple recently conducted a series of transactions involving its XRP token, raising temporary concerns among some market participants.
Although Ripple’s preprogrammed escrow releases occur monthly, community members regularly raise concerns. The company has not shown a shift in strategy to warrant worries of abandoning XRP or a major selloff, but the staggered escrow releases are making the community worry.
Read Also: Ripple and Exchanges Moved $313 Million XRP, As 800 Million XRP Is Locked Back in Escrow
The May Escrow Release
On May 1, Ripple released 500 million XRP from escrow. This marked a deviation from the usual monthly release of 1 billion XRP, sparking questions about the change in strategy. Following the release, Ripple distributed the 500 million XRP tokens internally across two of its wallets. Following this, 300 million XRP were placed back into escrow, adhering to the company’s standard practice of locking a significant portion of the released tokens.
Additional Internal Transfers
In a separate transaction, Ripple transferred an additional 500 million XRP, originating from a previously unlocked escrow allotment to another internal address. These tokens were also promptly returned to escrow, bringing the total locked amount to 800 million XRP, consistent with Ripple’s typical monthly practice.
These movements, totaling 1 billion XRP across four separate wallets, fall within Ripple’s standard operational procedures. The company routinely locks up 800 million XRP. However, Ripple has failed to release its usual 1 billion XRP. Although the release often triggers temporary anxieties, the reduced XRP releases have solidified these concerns.
In the preceding months, Ripple executed transfers of 253 million XRP (January), 60 million XRP (February), and 130 million XRP (March). While these transactions can cause short-term jitters, it’s crucial to understand they are part of Ripple’s regular escrow management strategy, and the company has made up for the discrepancies in the past.
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Read Also: XRP Whale Behind the Movement of Millions of XRP from Binance Revealed
XRP Price Resilience
Interestingly, despite the significant token movements, the price of XRP remained largely unaffected. The digital asset has climbed a meager 1.79% over the past 24 hours to its current price of $0.5221. While Bitcoin (BTC) and Ethereum (ETH) experienced price drops, XRP managed a slight increase.
While Ripple’s standard escrow management practices may occasionally raise eyebrows, the company’s commitment to transparency is commendable. By adhering to a consistent approach and maintaining a significant portion of XRP in escrow, Ripple aims to instill confidence in the token’s long-term stability and the overall health of the XRP ecosystem.
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