- Ripple Labs has recently made headlines by releasing a staggering billion XRP from its escrows.
- According to Whale Alert, Ripple has put back 70% of that amount.
- Returning XRP to escrow has been a routine practice for the company.
Ripple Labs, the company behind the popular cryptocurrency XRP, recently made headlines for releasing a staggering billion XRP from its escrows on May 1. However, the crypto tracking service Whale Alert has announced that the company has put back 70% of that amount, injecting 700 million XRP into escrow.
This means 300 million XRP tokens will likely be injected into the crypto market. Ripple conducts regular monthly escrow operations to maintain the stable supply of XRP on the market and to spark interest from financial institutions.
Ripple Returns Over $470 Million in XRP
Since January 2018, the company has been withdrawing a billion XRP each month, equivalent to $470 million in fiat currency. Returning 700 million or 800 million XRP to escrow is standard practice for the blockchain giant, and it also extends the term of the XRP release program.
These monthly XRP withdrawals have no impact on the coin’s price, although many in the XRP community were initially concerned about it during the first few years. In fact, some even started a petition to persuade Ripple to stop this practice.
Meanwhile, Whale Alert also reported that an anonymous whale recently transferred 24,757,056 XRP, worth around $11,377,133, from the leading Binance exchange to their wallet. This likely signifies a purchase on the dip.
On the Flipside
- Some of the XRP community has remained skeptical of Ripple’s monthly escrow operations, believing that the company’s large XRP reserves give it too much control over the market.
- Ripple’s use of XRP, and whether the company is prioritizing its own interests over those of XRP holders, has led to concerns about potential conflicts of interest.
Why You Should Care
The escrow account is an essential part of Ripple’s strategy to maintain a stable supply of XRP on the market and to generate interest from financial institutions.
By returning 70% of the billion XRP released from escrows on May 1 and injecting 700 million XRP back into escrow, Ripple is extending the term of the XRP release program and ensuring a consistent supply of the cryptocurrency.
To learn more about Ripple’s CEO criticizing US crypto regulations, read here:
Brad Garlinghouse: ‘Ripple Is Focused on Positive Developments’ – Regulatory Clarity Needed in US
To learn more about Ripple’s recent release of 1 billion XRP from escrow, read here:
Sourced from dailycoin.com.
Written by on 2023-05-03 12:50:00.
