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Ripple Labs Inc has released a total number of one billion XRP coins from escrow in a wave of three transactions. According to data insights from Whale Alerts, the first transaction occurred at 12:00 a.m. (UTC), with a total of 300 million XRP tokens unlocked.
The second transaction featured the release of 200 million XRP, while the last transaction saw the firm unlock a total of 500 million XRP tokens from its escrow accounts. The XRP release from escrow is a strategic business move designed to help cushion the liquidity of the cryptocurrency in circulation.
The locking of XRP in escrow accounts dates back to 2017 with a defined approach to release the token gradually every month in a bid to prevent devaluing the digital currency. In line with the strategy, a total of one billion tokens were designed to be released every month over a 55-month period. Based on the projected timeline, the last tranche is set to be released by December 2023.
The deep ties between Ripple Labs and the XRP coin remains a major basis of contention in the company's lawsuit with the U.S. Securities and Exchange Commission (SEC).
Tomiwabold OlajideEscrow impact on XRP price
The recent escrow release appears to be taking a minimal toll on the price of XRP. At the time of writing, the digital currency is changing hands at a price of $0.4819, down by 0.12% over the past 24 hours.
This price slip comes at a time when many top digital currencies are experiencing a broad price recovery across the board. With the current outlook, XRP may ride on the ongoing bullish momentum in the market and reverse its course in the near term.
While many may see the XRP release as a problem, it can actually serve as an avenue to stack up more of the asset in the near term.
Tomiwabold Olajide
Dan Burgin
Alex Dovbnya
Vladislav Sopov