Why Ripple Returns Some XRP Tokens To Escrow
Ripple has a practice of returning a significant portion of its unlocked XRP tokens after each monthly release from its escrow system. This move is aimed at supporting the price of XRP, according to pro-XRP legal expert Bill Morgan.
Morgan’s response came after another user suggested that Ripple was relocking the tokens due to lack of demand. However, Morgan argued that if Ripple sold all the tokens, people would accuse them of dumping. He also mentioned that most XRP sales from Ripple are used to support new ODL networks.
The claim that there is little or no demand for XRP seems unfounded, as XRP sales have increased this year and institutional investors are showing greater interest in the token.
Remaining Positive Amidst Price Fluctuations
While XRP’s price initially climbed following a court order, it has since dropped slightly. However, members of the community remain positive about the token’s value, believing that it will continue to grow as developers work on innovative projects.
The fact that Ripple doesn’t manage to sell even half of its monthly $XRP escrow release even after “having gained clarity” should tell you everything you need to know about this coin.
— Alter Diego (@elalterdiego) October 9, 2023
Hot Take: Ripple’s Strategy to Support XRP
Ripple’s decision to return a portion of its unlocked XRP tokens to escrow each month is a strategic move aimed at supporting the price of the token. By not selling all the tokens released, Ripple avoids negatively impacting the market and accusations of dumping. Instead, they use most XRP sales to support new ODL networks. Despite claims of low demand, XRP sales have increased and institutional investors are showing interest in the token. While price fluctuations occur, the community remains optimistic about XRP’s value and its potential for growth as developers continue to innovate.
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