Ripple Locks Away 800 Million XRP Tokens
Ripple Labs, a leading American-based payment firm, has locked away a substantial amount of XRP tokens in its escrow wallet as part of its monthly unlock program to help bolster its ecosystem and XRP.
Ripple Takes Back 800 Million XRP
A recent report from on-chain tracker Whale Alert revealed that Ripple took back about 800 million XRP tokens. This is no surprise, as the stated transaction has been a recurring outcome by the payment firm.
The payment firm locked the aforementioned funds after its monthly 1 billion XRP release, which has caught the attention of the crypto space. According to Whale Alert, the firm carried out the transaction in two distinct transfers.
First Transaction: Locking Away 500 Million XRP Tokens
For the first transaction, Ripple locked away 500 million XRP tokens, valued at $253 million at the time of the report. Data from XRPScan shows that the 500 million XRP were initially transferred from “Ripple 23” to “Ripple 11” wallets before they were locked away.
Second Transaction: Transferring 300 Million XRP Tokens to Escrow Wallet
The second transaction saw 300 million XRP valued at about $151 million being transferred to the company’s escrow wallet. Whale Alert revealed the transaction was carried out by another wallet address identified as “Ripple 10,” according to data from the XRPScan.
Ripple’s Strategy for Regulating XRP Supply
The firm has been releasing XRP from its escrow holdings every first day of the month. This process is a component of Ripple’s strategy to regulate the amount of XRP in circulation and uphold stability in the dynamic world of digital assets. After making up 55% of all XRP supply at first, the escrow accounts now own 40.7% of the supply.
XRP Whales On Dumping Spree
Whale Alert has also detected a substantial dump of XRP on cryptocurrency exchanges (CEXs). Whale Alert reported that over 67 million XRP was observed being moved to Bitso and Bitstamp platforms.
Transfer to Bitso and Bitstamp
Further data shows that an unknown wallet address transferred 37.9 million XRP to a Bitso-based wallet address. Later on, 29.7 million XRP was moved to Bitstamp, a Luxembourg-based crypto exchange, in a separate transaction. This particular wallet address has been carrying out this type of transaction to the CEXs for a while now, possibly due to Ripple’s strategic partnership with these centralized exchanges.
Hot Take: Ripple Continues to Manage XRP Supply Amidst Market Challenges
Ripple’s recent locking away of 800 million XRP tokens demonstrates its commitment to managing the supply and stability of XRP. Despite market challenges and XRP whales dumping tokens on exchanges, Ripple remains proactive in its approach to ensure the controlled release of XRP into the ecosystem.
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