Ripple just made a surprising move with XRP! The blockchain giant only released half of its expected billion, i.e. 500 Million XRP from escrow this month, leaving the crypto community buzzing. Is this a one-time shift, or a new strategy? And will it impact the price of XRP?
Read on to find out the latest on Ripple’s escrow plans and what it means for XRP holders.
In a recent development, Ripple has unfurled 500 million XRP from its escrow, igniting discussions across the cryptocurrency sphere. This release, coming in April, has not only piqued curiosity but has also fueled speculations regarding potential future token batches.
According to data from Whale Alert, the latest escrow execution occurred today at 02:51 (UTC) for April, unleashing 500 million XRP valued at an impressive $314.87 million. However, the remaining 500 million XRP tokens are still held back.
Despite the release, the Ripple address that received the tokens has yet to distribute or sell them, maintaining a balance of 500 million XRP. With this move, the escrow balance now stands at 4.5 billion XRP tokens, with the next execution slated for May 1st.
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Initially, Ripple had announced the locking of 55 billion XRP in escrow, intending to release $1 billion worth of coins each month. This strategic move aimed to regulate the token’s market dynamics.
While Ripple typically releases 1 billion XRP from escrow each month, there have been deviations. In the previous month, Ripple released only 500 million XRP and retained 800 million due to a technical glitch. Similarly, February saw the initial release of 800 million XRP, later completed to fulfill the 1 billion quota. However, January followed the usual pattern, with Ripple unlocking 1 billion XRP and then relocking 800 million.
The burning question remains: will Ripple opt for an additional 500 million XRP release for April?
According to pro-XRP lawyer Bill Morgan, this release aligns with Ripple’s routine strategy, where 1 billion XRP is unleashed from escrow each month. He stressed that such releases are standard practice for Ripple.
Additionally, Morgan explained that the 1 billion release plan usually occurs in two tranches of 500 million. While some of the released XRP is used to support various aspects by increasing the circulating supply, the majority is returned to escrow.
While this release might influence XRP’s price in the short term, Ripple must ensure liquidity, especially with burgeoning demand from businesses and partners.
As of now, the XRP price has dipped by 2.49% to $0.614, with its one-day trading volume surging by 16.44% to $1.2 billion. Notably, the crypto has witnessed a decline of about 3% in the last seven days, alongside a monthly downturn of over 1%.
As stakeholders keenly observe Ripple’s next moves, the impact of this release on XRP’s trajectory remains a topic of intense debate and analysis.
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