Ripple Releases 1 Billion XRP Tokens
Ripple, a prominent cryptocurrency payment company, has recently released another 1 billion XRP tokens from its escrow accounts. This action brought Ripple’s escrow balance to below 40 billion XRP, worth approximately $610 million. The move is part of a routine procedure introduced by Ripple to stabilize the XRP market in December 2017.
XRP’s market cap has increased by $5 billion since October 1, 2023, despite the release of 1 billion coins. Currently, XRP is ranked fifth in the global crypto ranking with a valuation of $32.8 billion.
Ripple’s Commitment to XRP Market Stability
Ripple’s escrow system was introduced in December 2017 to stabilize the XRP market. Ripple locked 55 billion XRP in different escrow accounts with a plan to release 1 billion each month. Now, the company holds 39.9 billion XRP in its escrow accounts.
Ripple Criticized for Selling XRP to Fund Operations
Critics have accused Ripple of suppressing XRP’s price due to its monthly market sales. One such critic, Jerry Hall, stated that Ripple benefits from selling XRP monthly to finance its business operations, without reciprocating the effort of XRP holders who fund these operations.
Hot Take
The release of 1 billion XRP tokens by Ripple has lowered its escrow balance, a move that was expected but has once again sparked debate about Ripple’s influence on the market. It will be interesting to see how Ripple administers the newly unlocked tokens and if they will lock back some amounts while selling others in the open market. This remains a development to closely monitor in the coming months.
By
By
By
By
By
By