
Ripple altered its typical monthly XRP release, locking 700 million tokens back into escrow.
Significant XRP transfers occurred, involving hundreds of millions of tokens, followed by the relocking of 700 million XRP.
Hints from Ripple's CEO and recent legal developments suggest potential changes in XRP sales and supply management.
Ripple has locked 700 million XRP tokens back into escrow, according to a recent alert from Whale Alert. As part of its regular escrow program, Ripple releases 1 billion XRP each month to keep the token supply predictable. These tokens are used for institutional sales, operational costs, and other purposes.
With XRPโs price dipping and massive token transfers happening behind the scenes, thereโs more to this story than meets the eye. Letโs break down whatโs going on.
Ripple Breaks Its Usual Pattern
However, on April 1, Ripple did not follow its usual process. Instead of releasing 1 billion XRP, it moved the tokens between wallets and re-escrowed 700 million. This unexpected move has led to speculation about possible changes in its supply strategy. Since then, XRPโs price has dropped 1.87% to $2.09.
Many believe this could signal a shift in Rippleโs automated release system. Is the company adjusting its supply plan, or is it preparing for a major market move?
Massive XRP Transfers Before Re-Escrow
On April 2, Ripple carried out several large XRP transactions, shifting hundreds of millions of tokens worth billions of dollars. The key transfers included:
- 300 million XRP ($629 million) to wallet โrBgโฆ91mโ
- 200 million XRP ($420 million) to wallet โrKDโฆ2opโ
- 170 million XRP ($357 million) to wallet โrKDโฆ2opโ
- 330 million XRP ($693 million) to wallet โrDdโฆeCKโ
Following these transactions, Ripple re-locked 700 million XRP into escrowโ370 million from โrKDโฆ2opโ and 330 million from โrDdโฆeCKโ. Meanwhile, the 300 million XRP in โrBgโฆ91mโ remains available, likely for operational use or future strategic moves.
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Rippleโs Escrow Strategy Might Be Changing
This isnโt the first time Ripple has returned a large portion of XRP to escrow. Last month, instead of releasing 1 billion XRP, it locked 700 million XRP back. This pattern suggests Ripple could be refining its approach to managing token supply.
Adding to the speculation, Ripple CEO Brad Garlinghouse recently suggested that the company may reduce XRP sales in the future, a move that could relieve some selling pressure on the token.
Ripple’s Influence on XRP
Despite these changes, Ripple still holds over 40% of the total XRP supply. The company also recently withdrew its cross-appeal against the U.S. Securities and Exchange Commission (SEC) after the regulator agreed to ask the court to remove a ban preventing Ripple from selling XRP to institutional clients. This restriction was originally part of Judge Analisa Torresโs ruling last August.
With Ripple altering its escrow approach and hinting at reduced sales, investors are watching closely. Are these changes a sign of a new strategy, or is Ripple simply adjusting its supply model?
The market reaction in the coming weeks could provide some answers.
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