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Fintech giant Ripple has returned 800 million XRP to its escrow, per Whale Alert data. As is customary, Ripple released 1 billion XRP from its escrow on the first day of December.
Three transactions made up the locking of the 800 million XRP back into escrow: First, 500,000,000 XRP, or half a billion, worth $304,378,440, was locked in Ripple escrow; second, 200,000,000 XRP, or $121,705,709, was locked; and third, 100,000,000 XRP, or $60,893,306, was locked in Ripple escrow in a separate tranche.
In 2017, Ripple introduced its escrow system, pledging to release 55 billion XRP over 55 months in monthly installments of 1 billion XRP.
By eliminating any unexpected shocks or dumps that can have an impact on the price of XRP, Ripple can transfer XRP to the market in a predictable manner, thanks to the escrow mechanism.
Tomiwabold OlajideAll 1 billion XRP that Ripple unlocks each month is not sold or used, though. Usually, Ripple returns to the escrow roughly 800 million XRP and retains another 200 million XRP for its operating costs and other business ventures.
In another move, a stash of 17.9 million XRP exited the Bitso crypto exchange. Whale Alert reports of a 17,900,000 XRP tranche worth $10,849,815 transferred from Bitso to an unknown whale wallet.
Exchange outflows are a sign that investors are shifting their funds into storage, which can be a bullish indication because it suggests that they may decide to hold onto their assets rather than sell them quickly. This suggests that investors might believe that prices are about to rise.
As of this writing, XRP was trading at $0.614, up 0.20% over the previous day.
Arman Shirinyan
Alex Dovbnya
U.Today Editorial Team
Vladislav Sopov
Dan Burgin