What Ripple Did with the 1 Billion XRP Released in February
On March 1, Ripple will unlock $600 million worth of XRP tokens from its escrow system. This monthly release of 1 billion XRP tokens is a regular occurrence for the company. Let’s take a closer look at what Ripple did with the 1 billion XRP tokens that were released in February.
In February, the escrow system unlocked 1 billion XRP tokens. However, Ripple decided to re-lock 800 million of these tokens, leaving them in escrows that will expire between June and July 2027. This means that only 200 million XRP tokens were retained by the company.
Ripple’s Treasury Account Sell-Offs
Ripple used a portion of its treasury account, named ‘Ripple 1,’ to sell off some of the unlocked XRP tokens. In total, the company sold 260 million tokens, equivalent to $156 million, in three batches. These tokens were sent to a specific address known as ‘rP4X2…Kxv3.’
The following transactions took place:
- On February 1, Ripple sent 200 million XRP to its reserves.
- On February 5, the payment protocol made a transaction of 120 million tokens.
- On February 11, another transaction of 80 million XRP took place.
In addition to using the unlocked reserves, Ripple received an extra 100 million tokens from ‘Ripple (52)’ and spent 60 million of them on February 20.
Ripple’s Influence on Market Dynamics
Each month, as Ripple releases more XRP tokens, it contributes to the token’s inflation. The company’s actions have a significant impact on the market dynamics and value of XRP. By re-locking a large portion of the unlocked tokens, Ripple aims to control the supply and prevent any negative effects on the token’s price.
Hot Take: Ripple’s Monthly XRP Releases
With the release of 1 billion XRP tokens in February, Ripple demonstrated its commitment to maintaining control over the token’s supply. By re-locking a majority of the unlocked tokens, Ripple aims to prevent excessive inflation and potential price fluctuations. However, the company still retains a significant amount of XRP that it can use for various purposes, such as selling off to generate funds or supporting projects within its ecosystem.
Ripple’s monthly XRP releases will continue to be closely monitored by investors and market participants. The way in which Ripple manages its token supply can have a direct impact on the value and perception of XRP. As the company balances its need for liquidity and funding with its responsibility to maintain a stable market, it will be interesting to see how these monthly releases unfold in the future.
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