According to Whale Alert, the tracker of large transactions of cryptocurrencies from and to exchanges, about 1 billion units of Ripple’s digital token XRP were recently unlocked from an escrow of an unknown wallet.
As reported by the whales’ transactions tracker, the XRP unlocked from the escrow totaled 900 million via two separate transactions.
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The first transaction involved a total of 500,000,000 XRP worth $188,859,853, while the second involved 400,000,000 XRP worth $151,087,882.
🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 500,000,000 #XRP (188,859,853 USD) unlocked from escrow at unknown wallethttps://t.co/DG4IYZyUvY
— Whale Alert (@whale_alert) August 1, 2022
🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 400,000,000 #XRP (151,087,882 USD) unlocked from escrow at unknown wallethttps://t.co/yBRPiWwZrt
— Whale Alert (@whale_alert) August 1, 2022
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Is Ripple Behind the Transaction?
Ripple, the San Francisco-based cross-border payment firm, is the major distributor of the 7th largest cryptocurrency by market cap, XRP. And this distribution has been going on since 2017.
The question: Is Ripple behind the latest transaction of 900 million XRP? The report from WhaleAlert says the whopping tokens were unlocked from an escrow of an unknown wallet, but the timing says it’s Ripple’s usual monthly activity.
On every first day of the month, Ripple usually unlocks 1 billion XRP from escrow. After a few hours, the firm usually locks back 800 million units of the digital token and uses the remaining 200 million XRP to cover the company’s expenses for the month. It’s also said that Ripple uses the transactions to boost XRP liquidity.
Read Also: Brad Garlinghouse: Ripple Would Spend Over $100 Million Fighting SEC in Ongoing XRP Lawsuit
It’s worth noting that these particular monthly sales have been used by the United States Securities and Exchange Commission (SEC) to file a suit against Ripple in court.
In December 2020, the SEC under the leadership of Jay Clayton filed a lawsuit against Ripple for the sales of XRP as unregistered security for seven years. A similar accusation was also leveled against two of its top executives, CEO Brad Garlinghouse and co-founder Chris Larsen.
Although the case is progressing in favor of Ripple, there are chances that it will not end this year, considering the timeline released a few months ago.
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