- Ripple has continued to release XRP tokens from escrow while also engaging in strategic sales.
- The company has historically sold its holdings strategically, impacting the token’s short-term price action.
- Investors are advised to monitor new escrow accounts for potential future sales.
Ripple, the company behind the XRP digital asset, continues its regular release of XRP tokens from escrow accounts while engaging in strategic cryptocurrency sales. These activities, along with the introduction of new escrow accounts, have financial implications for the long-term value of XRP and require close attention from investors.
Ripple Releases 1 Billion XRP
On March 1st, Ripple unlocked a pre-determined 1 billion XRP, valued at around $630 million. Per its established practice, the company retained 200 million XRP (approximately $126 million) for its treasury reserves and potential future sales.
This transfer involved moving the designated amount from “Ripple (22)” – the designated unlocked escrow address – to “Ripple (1),” which serves as the company’s treasury reserve account. Notably, March 1st marked the final transaction from both “Ripple (22)” and “Ripple (23)” escrow accounts, indicating they are now depleted.
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However, the story doesn’t end there. While some XRP was retained, some of the unlocked tokens found their way to new escrow accounts. “Ripple (10)” received 200 million XRP, set to unlock in July 2027, while a newly introduced “Ripple (12)” account received 100 million XRP with an August 2027 unlock date.
Meanwhile, “Ripple (23)” sent its unlocked 500 million XRP to a new address, “Ripple (11),” where it’s been entirely locked in an escrow set to expire in July 2027.
Ripple Account Activity May Impact Price
Investors and market participants are advised to monitor “Ripple (10)” and “Ripple (11)” from April onwards, as these accounts represent potential sources of future XRP sales by Ripple. The company has a history of strategically selling its holdings, impacting the token’s short-term price action. These sales often represent a significant portion of XRP’s daily trading volume.
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Furthermore, Ripple has demonstrated the ability to release additional XRP beyond the regular monthly unlocks. In February, the company transferred an extra 100 million XRP from a previously dormant wallet for sale.
On the Flipside
- Introducing new escrow accounts with extended unlock dates creates further uncertainty for long-term investors.
- Despite releasing new escrow accounts, Ripple still maintains significant control over XRP, with locked tokens representing a large portion of the total supply.
Why This Matters
This ongoing cycle of XRP unlocks, retention, and re-escrowment, coupled with strategic sales, creates a dynamic supply and future potential for market fluctuations, demanding careful monitoring by investors for informed decision-making.
To learn more about the ongoing legal battle between Ripple and the SEC and the allegations of XRP price manipulation, read here:
SEC vs Ripple: Allegations of XRP Price Manipulation Surface
To learn more about how XRPL and Axelar are working together to connect blockchain ecosystems and enable real-world asset tokenization, read here:
How XRPL and Axelar Aim to Connect Blockchain Ecosystems
