XRP News: Ripple’s Q3 Report Sparks Controversy on XRP Escrow Strategy

Ripple’s Q3 2024 Markets Report, released on November 1, has sparked fresh discussions in the crypto community about the company’s XRP escrow holdings. During the third quarter, Ripple’s escrow balance dropped from 39.5 billion XRP at the end of Q2 to 38.9 billion, with one billion XRP scheduled for monthly release over the next 42 months.

As the SEC vs. Ripple case drags on, investors are watching closely for potential impacts on XRP’s price. Some in the XRP community worry that these regular escrow releases could keep prices down, but notable XRP-focused lawyers have argued otherwise.

Let’s see what the chatter is all about.

Clearing up Escrow Misconceptions

In a recent X (formerly Twitter) post, crypto lawyer Bill Morgan addressed misunderstandings around Ripple’s XRP escrow and its effect on XRP’s price. Responding to claims that the SEC’s lawsuit against Ripple presented the escrow as a price-boosting mechanism, Morgan disagreed, arguing that the escrow doesn’t suppress XRP’s price as some believe.

Crypto Community Reacts

Morgan’s comments sparked a range of reactions. User @WelcomeNowLeave requested a more detailed explanation of how Ripple’s escrow holdings might affect both retail investors and financial institutions. Meanwhile, another user, 박탱고 (@BagtaengG), argued that the escrow volume does indeed put downward pressure on XRP’s price, suggesting that large holders may overlook this impact.

Morgan responded firmly, stating that the escrow serves as a responsible fund management tool, not a price manipulation tactic. This debate reflects ongoing discussions within the XRP community about Ripple’s holdings and their influence on the market.

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How Does the SEC Impact XRP’s Price

Aside from the escrow issue, the unresolved SEC vs. Ripple case remains a critical factor in XRP’s price movements. Following a favorable Programmatic Sales ruling in July 2023, XRP surged to $0.9327 as major U.S. exchanges relisted the token. However, the SEC’s appeal in October 2024 led to a dip, with XRP eventually falling below $0.60 and remaining at lower levels.

An SEC win could lead to XRP’s delisting in the U.S., jeopardizing hopes for an XRP spot ETF.

The crypto community is now focused on the SEC’s opening brief, expected on January 15, 2025, just days before the presidential inauguration. Investors are eager to gauge how this appeal might impact XRP and the broader market as regulatory pressures continue to shape XRP’s price path.

As the legal battle continues, the future of XRP remains uncertain. Stay tuned to Coinpedia for updates.