In a recent update from Whale Alert, Ripple, the blockchain giant behind the cryptocurrency XRP, has completed its scheduled release of 1 billion XRP tokens. This monthly release, executed in three separate transactions, involves 500 million XRP valued at approximately $280 million, 200 million XRP worth around $112 million, and a final 300 million XRP, totaling $168 million.
Ripple’s escrow strategy, which began in 2017, initially involved locking 55 billion XRP tokens into multiple escrow accounts. The intent was to release 1 billion XRP each month, thereby creating a more predictable supply of the cryptocurrency. However, the company faced a setback earlier this year with several failed transactions, causing delays in the release schedule. Despite these issues, Ripple has now restored a consistent pattern, with monthly releases proceeding as planned.
David Schwartz, Ripple’s Chief Technology Officer, has been vocal about the company’s strategy, acknowledging both its advantages and shortcomings. While the goal was initially to reduce Ripple’s XRP holdings, Schwartz remains skeptical about the effectiveness of the escrow plan. He has even suggested that alternatives such as “burning” the escrowed tokens could potentially resolve the issue of XRP’s low price. The concept of blackholing the escrow account, which involves permanently removing the tokens from circulation, has gained traction as a potential solution to enhance XRP’s value.
The latest escrow release has led Ripple to lock up 800 million XRP, divided into two transactions of 400 million XRP each, valued at $221.4 million and $221.3 million, respectively, due to XRP’s fluctuating market price. As of the latest update, XRP is trading at $0.5606, marking a 1.26% decline over the past 24 hours. The impact of the escrow transactions on XRP’s price has been minimal so far, but the strategy continues to be a topic of heated discussion within the cryptocurrency community.
The debate surrounding Ripple’s escrow strategy underscores the broader conversation about how best to manage the supply of cryptocurrencies and their impact on market value. As Ripple moves forward, the effectiveness of its strategy will likely remain a point of contention among analysts and investors alike.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
