Ripple’s Decision to Lock 800 Million Tokens in Escrow: Will it Have a Positive Impact on XRP Price?
Ripple, a prominent player in the world of cryptocurrency payments, surprised the market by locking 800 million XRP in escrow accounts on March 1. This unexpected move deviated from the anticipated release of the full 1 billion XRP. It remains uncertain if the remaining 200 million XRP will be unlocked later in March. The decision to lock such a large amount of XRP may be connected to the recent increase in its price.
The locking of the XRP tokens took place through three transactions. The first transaction involved locking 100 million XRP, valued at $59.48 million. This was followed by another transaction that locked 200 million XRP, worth $118.94 million, in the escrow wallet. Finally, Ripple secured the last batch of XRP for March 2024, totaling 500 million XRP, valued at $297.65 million.
Initially, there was confusion regarding the unlock of 1 billion XRP, as the Whale Alert later revealed the release of only 500 million XRP on March 1. Interestingly, a previous attempted unlock the day before encountered a transaction error, adding intrigue to the situation. The question that lingers is whether Ripple intends to unlock the remaining 500 million XRP later in the month to fulfill the scheduled 1 billion release. This mirrors a similar incident in February, where Ripple faced a challenge but managed to resolve it before the end of the month.
The escrow locks implemented by Ripple have caught the attention of experts and shaped community sentiment. Pro-XRP lawyer Bill Morgan believes that the positive trading of Ripple-backed XRP coincided with the significant token lock, leading to debates. Morgan suggests that derivatives data is contributing to speculation surrounding XRP’s recent surge past $0.62, attracting global attention.
As the crypto community eagerly awaits Ripple’s next moves, understanding the process of locking and unlocking XRP tokens provides insights into Ripple’s management strategy. The actions taken by Ripple in the coming days will not only impact market sentiment but also reveal its plans for the distribution of XRP.