Ripple News: Future XRP Releases Questioned as Merely 500 Million XRP Unlocked from Escrow
Ripple, the renowned blockchain company, has recently made headlines by releasing 500 million XRP from its escrow for the month of April. This move has sparked discussions and speculations within the cryptocurrency market, especially considering the increased scrutiny surrounding XRP sales by the XRP community. Many are now wondering if there will be future releases of 500 million token batches.
According to data from Whale Alert, the most recent escrow execution occurred today at 02:51 (UTC) and involved 500 million XRP, which is valued at a staggering $314.87 million. It’s worth noting that the remaining 500 million XRP tokens have yet to be released. The tokens were received by a Ripple address, but they have not been distributed or sold yet. The wallet’s escrow balance now stands at 4.5 billion XRP tokens, with the next execution scheduled for May 1st.
Initially, Ripple announced that it would lock 55 billion XRP in escrow, with plans to release $1 billion worth of coins each month. This measure was put in place to regulate the market dynamics of the token.
It’s important to mention that Ripple usually releases 1 billion XRP from escrow each month, but there have been instances where this number has been adjusted. Last month, for example, Ripple only released 500 million XRP due to a technical issue preventing further unlocking. In February, they initially released 800 million XRP but later completed the 1 billion quota. January was the only month this year when Ripple followed its usual pattern of unlocking 1 billion XRP and relocking 800 million.
Pro-XRP lawyer Bill Morgan, who is known for his support of XRP, views this recent release as part of Ripple’s routine strategy. He stated that 1 billion XRP is typically released from escrow each month and that these releases are a regular practice by Ripple. Morgan further 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.
Although the release of XRP tokens may have a short-term impact on its price, Ripple needs to ensure liquidity, especially with the growing demand from businesses and partners.
Currently, the price of XRP has declined by 2.49% to $0.614, with a one-day trading volume increase of 16.44% to $1.2 billion. Over the past seven days, XRP has lost about 3%, and it has experienced a monthly decline of over 1%.