- A crypto lawyer explains the functionality of Ripple’s escrow from the firm’s perspective.
- Ripple’s escrow shows the XRP volume it controls is steadily declining.
- A decreasing Ripple’s XRP holding volume is a confidence booster for the token’s holders.
Crypto lawyer Bill Morgan explained how Ripple’s escrow works. In a post on X, Morgan said Ripple’s escrow shows responsible stewardship of the large but steadily declining volume of XRP it controls.
Morgan noted the SEC’s claim in its lawsuit against Ripple that the escrow was one of several measures Ripple took to improve the price of XRP. Morgan added that many people in the XRP community think it suppresses the price of XRP, which he says is incorrect.
A discussion on Ripple’s escrow holding dynamics prompted Morgan’s response and explanation of how the escrow works. An XRP user asked him to explain what it means to have XRP in escrow and not in escrow and how it affects retail and banks.
Ripple’s Declining XRP Holdings
Morgan highlighted the fact that Ripple’s percentage of XRP holdings has decreased significantly. The crypto lawyer said Ripple escrow holdings of XRP are now below 39%, down from 55% in 2020 when he became interested in cryptocurrency.
Read also: XRP Whale Movements Amidst 500M XRP Escrow Release
Ripple has faced criticism for its XRP distribution pattern. Many of the firm’s critics accused Ripple of holding too much control over XRP and threatening the project’s decentralization. In addition to Ripple’s legal challenges, this fear of partial centralization has affected users’ sentiments. They worry that Ripple could single-handedly determine the economic future of XRP.
Morgan’s observation could boost XRP holders’ confidence and encourage other crypto community members who like the project. It could assure users that the project is moving towards a more decentralized future, making it more appealing to crypto proponents and increasing its adoption.
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Source: https://coinedition.com/ripples-xrp-escrow-explained-dispelling-myths-and-fears/