XRP Drops 5% as Ripple Unlocks 1 Billion Tokens From Escrow

April 2, 2023 Angelo Castelda Cryptocurrency News 0

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Ripple, the leading crypto payment company, has released massive XRP tokens from its escrow wallet into the market.

This move has caused some negative reactions from the XRP community and investors, as the token price has dropped by 5% in the last 24 hours.

According to Whale Alert, a blockchain tracker service, Ripple transferred 1 billion XRP tokens worth $513.37 million from its escrow account in three transactions.

The first transaction involved 500 million XRP tokens worth $271.05 million from an unknown wallet. The second and third transactions involved 200 million and 300 million XRP tokens from the same wallet.

This release of 1 billion XRP tokens is part of Ripple’s 55-month escrow project that started in 2017. The project aims to lock up 55 billion XRP tokens in escrow and release 1 billion XRP tokens monthly to fund Ripple’s operations and incentivize its partners and customers.

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However, not all released tokens are left in circulation, as Ripple usually returns a large portion of them back to the escrow account after a few days.

The impact of this monthly release on the XRP price has been a matter of debate among the crypto community. Some argue that it creates selling pressure and dilutes the token’s value, while others claim that it provides liquidity and stability for the market.

In any case, the latest release seems to have coincided with a decline in the XRP price, as it has lost 5% of its value in the last day and is currently trading at $0.50.

XRP is also facing challenges from the ongoing lawsuit between Ripple and the US Securities and Exchange Commission (SEC).

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The SEC accuses Ripple of selling unregistered securities in the form of XRP tokens since 2013 and seeks to stop its distribution and impose penalties on Ripple and its executives.

Ripple denies the allegations and argues that XRP is a currency, not a security. The case is still ongoing and could have significant implications for the future of XRP and the crypto industry.

Despite these hurdles, XRP remains one of the world’s most popular and widely used cryptocurrencies. It has a market capitalization of $26.27 billion and ranks as the sixth-largest cryptocurrency by market cap.

It also has a loyal fan base and a strong network of partners and customers who use it for cross-border payments and remittances. XRP has also shown some impressive performance in recent weeks, gaining 19.2% in the last week and 32.4% in the last month.

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About Angelo Castelda 111 Articles
Angelo Castelda works as a feature writer in Asia. In his free days, he likes to read books and magazines about the latest architectural news and trends. This ultimately made him fall in love with architecture and now spends most of his time writing about it.

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