Home Altcoins News Ripple Locks 700M XRP in Escrow, XRP Price Dips 1.87%

Ripple Locks 700M XRP in Escrow, XRP Price Dips 1.87%

XRP Price Dip

Ripple recently locked 700 million XRP tokens back into escrow, fueling speculation about potential changes in the company’s strategy. As part of its regular program, Ripple typically releases 1 billion XRP tokens every month from escrow to maintain a predictable supply in the market. These tokens are used for various purposes, including institutional sales, operational costs, and other functions that help facilitate Ripple’s ongoing business activities.

However, on April 1, Ripple surprised the market by not releasing the usual 1 billion XRP. Instead, the company moved 1 billion XRP tokens between wallets and locked 700 million XRP back into escrow. This unexpected shift in operations has raised questions among investors and traders about Ripple’s future plans. The price of XRP responded negatively to the news, dropping 1.87% to $2.09. This move has created an air of uncertainty in the market, as it’s not clear whether Ripple is adjusting its token release system or preparing for a significant move in the market.

Ripple’s decision to lock a substantial portion of its XRP tokens in escrow signals that the company may be taking a more conservative approach when it comes to controlling the supply of XRP. Such moves could have far-reaching implications for XRP’s price, especially in a market that is already sensitive to changes in token availability. Investors will be keen to understand whether Ripple is planning to release fewer tokens in the future, which might ease pressure on the price, or if this is a one-time decision to maintain a stable supply in the short term.

Ripple Conducts Large XRP Transactions

In addition to locking the 700 million XRP, Ripple also conducted several large transactions on April 2, moving hundreds of millions of XRP tokens across different wallets. These moves included transferring 300 million XRP (worth $629 million) to one wallet, 200 million XRP ($420 million) to another, and 170 million XRP ($357 million) to the same wallet as the 200 million XRP transfer. Additionally, Ripple transferred 330 million XRP ($693 million) to another wallet.

After completing these large transactions, Ripple relocked 700 million XRP tokens into escrow, split between two wallets: 370 million XRP from one wallet and 330 million XRP from another. The 300 million XRP left in the initial wallet, “rBg…91m,” likely remains for operational purposes or other strategic initiatives. Ripple frequently moves XRP between wallets and back into escrow as part of its ongoing efforts to manage the distribution of tokens.

Ripple CEO Hints at Reducing XRP Sales

Ripple’s CEO, Brad Garlinghouse, has recently hinted that the company may reduce its XRP sales in the future. If true, this could help alleviate some of the downward pressure on XRP’s price. Ripple holds more than 40% of the total supply of XRP tokens, and any changes in the way the company distributes or sells these tokens could have significant consequences for the market. By reducing sales, Ripple may be able to reduce market volatility and create a more stable environment for XRP’s value to grow over time.

Last month, Ripple also withdrew its cross-appeal against the U.S. Securities and Exchange Commission (SEC) after the agency agreed to request the court drop a ban that had previously prevented Ripple from selling XRP to institutional clients. This shift in the legal landscape may allow Ripple to move forward with its institutional sales plans, potentially boosting the liquidity of XRP.

Conclusion

Ripple’s decision to lock 700 million XRP tokens in escrow and its recent large XRP transactions have generated a significant amount of buzz in the cryptocurrency market. While some see this as a sign of a more cautious approach, others speculate that Ripple is preparing for future strategic moves. XRP’s price has experienced a slight dip as a result of these developments, but it remains to be seen how these actions will impact the market in the long term. With the ongoing changes to Ripple’s sales strategy and the company’s growing presence in the blockchain industry, XRP investors and traders will need to keep a close eye on future updates to understand the full implications of Ripple’s decisions.

Read more about:
Share on

Pankaj K

Pankaj is a skilled engineer with a passion for cryptocurrencies and blockchain technology. With over five years of experience in digital marketing, Pankaj is also an avid investor and trader in the crypto sphere. As a devoted fan of the Klever ecosystem, he strongly advocates for its innovative solutions and user-friendly wallet, while continuing to appreciate the Cardano project. Like my work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

Crypto newsletter

Get the latest Crypto & Blockchain News in your inbox.

By clicking Subscribe, you agree to our Privacy Policy.

Get the latest updates from our Telegram channel.

Telegram Icon Join Now ×