On Sunday, March 1, following recent tradition, Ripple released one bln XRP from its escrow storage space. Three consecutive transactions of 500 mln, 400 mln and 100 mln XRP. The total amount of crypto totals around 230 mln USD. The data comes from Whale Alert.
Why Ripple unfreezes giant XRP amounts
The funds released from Ripple’s escrow wallet can be used either for investing, charity or the current needs of the company. In a series of tweets last year, when Brad Garlinghouse addressed criticism against Ripple on that issue, he stated that the company uses XRP for increasing the coin’s liquidity.
Also, in an interview in 2019, the CEO assured the community that Ripple was not interested in pushing the XRP price down.
Columnist and crypto analyst, Joseph Young, believes that there is no connection between the mammoth-sized amounts of XRP being released from Ripple’s escrow every month and the coin’s price staying in the lows.
Later on, Whale Alert showed that 900 mln XRP was sent back to escrow.
Luke Martin cites Financial Times' bashing of XRP sales
Crypto trader and analyst Luke Martin has cited Brad Garlinghouse from a recent Financial Times article in a tweet. The article pours heavy criticism on blockchain giant Ripple and its regular XRP sales.
The trading expert points out that Ripple would have become a loss-making enterprise if it had not been for constantly selling XRP.
Here is a fun quote from the CEO of Ripple:@bgarlinghouse clarified “We would not be profitable or cash flow positive [without selling XRP], I think I’ve said that. We have now.”
— Luke Martin (@VentureCoinist) March 1, 2020
Dumping $XRP on you is how Ripple stays alive. https://t.co/H2KwsANDVo
Alex Dovbnya
Arman Shirinyan
Tomiwabold Olajide