The US Securities and Exchange Commission is suing Ripple Labs, the company behind the cryptocurrency XRP (SEC). According to the SEC, Ripple Labs raised billions of dollars in an unregistered securities offering, and XRP is a security.
Ripple Labs is fighting the lawsuit in court and has denied the allegations. The outcome of the case could have far-reaching consequences for the crypto community and as a result, it is much anticipated.
Meanwhile, news has cropped up about the Ripple management of the XRP token.
Whale alert on locked-up XRP
Whale Alert is one of the largest and fastest-growing crypto communities. They provide real-time transaction data. In a recent whale alert, it was reported that 500,000,000 XRP worth 200,168,995 USD was locked in escrow at Ripple Escrow wallet.
The term “in escrow” in financial transactions refers to a temporary state of an item, such as money or property, that has been transferred to a third party. This is typically done on behalf of a buyer and seller. “In escrow” refers to a type of legal holding account for items that cannot be released until certain conditions are met. Items are typically held in escrow until the process involving a financial transaction is completed.
1 Billion tokens were unlocked at the beginning of the year
On the first day of the year, exactly 1 billion XRP tokens were unlocked from escrow accounts. Previously, XRP was unlocked directly from Ripple escrows; this time, according to Whale Alert, it occurred in unknown accounts.
Large amounts of XRP tokens were also transferred by cryptocurrency whales before and after Ripple locked XRP in escrow. Ripple, interestingly, was involved in the most recent round of XRP movements. An anonymous whale transferred to Ripple 300 million XRP tokens worth $119.48 million. Notably, the transaction took place an hour before Whale Alert revealed the details of the 600 million XRP tokens held in escrow by Ripple.
Ripple aims to bring predictability to the XRP offering when the token is directly used by the company in its transactions by unlocking XRP from its escrows each month. While such accounts initially held 55% of the 100 billion XRP supply, that figure has now dropped to 42.7%.
To conclude,
With so many XRP movements being reported, it is possible that something significant is in the works for the token.
Source: https://coinpedia.org/ripple/ripple-escrows-600-million-xrp-tokens-worth-246-6m-whalealert/