Ripple, the San Francisco-based blockchain company, unlocked 1 billion XRP from escrow on May 1. The release, which is equivalent to $469.6 million, is part of Ripple's monthly XRP distribution strategy that began in December 2017.
The company has been releasing XRP from escrow in a controlled manner to provide supply predictability and to ensure the stability of the XRP token.
The recent unlock is the latest in a series of monthly releases designed to support the growing ecosystem and meet the increasing demand for the cryptocurrency.
Any unused XRP is usually returned to escrow, effectively extending the release schedule.
Critics argue that Ripple's control over the majority of XRP tokens held in escrow raises concerns about centralization. They believe that this level of control by a single entity goes against the decentralized principles that many cryptocurrencies, including Bitcoin, were built upon. Some investors worry that Ripple's ability to release large amounts of XRP into the market each month could be used to manipulate the token's price.
Alex DovbnyaThe 1 billion XRP unlock comes on the heels of a strong Q1 2023 performance for Ripple. The company reported a surge in its XRP sales, with total sales reaching $361.06 million, a major increase compared to $226.31 million in Q4 2022.
The XRP Ledger's on-chain activity also performed well, with volumes on both decentralized exchange centralized exchanges experiencing significant growth.
According to CoinGecko data, XRP is changing hands at $0.46 on major spot exchanges at press time.
Godfrey Benjamin
Arman Shirinyan
Vladislav Sopov
Dan Burgin