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Ripple Locks 1.2 Billion XRP in Escrow Without Releasing Any Tokens This Month

11/02/2022
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Ripple has put a significant amount of XRP tokens into its escrow wallet.

According to data shared by Whale Alert, Ripple locked a whopping 1.2 billion XRP in escrow. The main specialty is that Ripple released zero XRP this month before locking them.

The 1.2 billion tokens were locked in three separate transactions. For the first transaction, 500 million XRP worth $230.36 million were locked in Ripple Escrow Wallet.

A minute later, Whale Alert observed the blockchain company lock back another 200 million XRP in its escrow wallet.ย 

Lastly, 500 million XRP ($230.36 million) were transferred to the Ripple Escrow wallet from an anonymous address.

Different from Previous Transactions

Notably, the recent transactions contrast Rippleโ€™s monthly XRP release. Over the past months, before Ripple puts back some XRP in escrow, the blockchain company usually releases at least 1 billion units of XRP.ย 

It is from the newly released tokens that the blockchain company locks some amounts of XRP back into its escrow wallet. For instance, on certain occasions, when Ripple unlocks 1 billion XRP at the start of every month, the blockchain company usually locks back 800 million units of the tokens back in escrow.

Ripple Monthly Token Unlock Initiative

Rippleโ€™s token unlock program is an initiative that started in 2017. Ripple locked 55% of XRPโ€™s total supply in escrow at the time to boost the tokenโ€™s price. The Silicon Valley tech company stated that it would unlock 1 billion units from escrow monthly.

The move contributed toward the massive rally of XRP to an all-time high of $3.4 in January 2018. With the SEC charging Ripple for violating U.S. securities law via its 2013 Initial Coin Offering, the blockchain company thought it was important to reduce the number of XRP it puts back into circulation, to protect the tokenโ€™s price from dumping further.

Based on this, whenever Ripple unlocks one billion XRP every month, it locks back at least 800 million tokens, while the 200 million XRP coins cater to the companyโ€™s operational costs. Unlike previous months, Ripple did not unlock the usual 1 billion XRP this month. Instead, it locked a whopping 1.2 billion XRP in escrow.

As reported by The Crypto Basic, Ripple, in its Quarter 3 report, confirmed that Rippleโ€™s XRP Holdings are now less than 50% Of the supply for the first time in its 10-year history.

The Q3 report showed that Ripple sold about $100 million less XRP than it did in Q2 while purchasing more XRP simultaneously. As per the figures, Rippleโ€™s net XRP sales in Q3 amounted to only $310 million, compared to over $408 million in Q2. Meanwhile, total purchases in Q2 rose to about $2.5 billion in Q3, compared to $1.7 billion in Q2.

In Q3, Ripple Escrow released one billion XRP monthly, totaling three billion in the third quarter. Out of these 3B XRP released, Ripple, locked 2.1 billion XRP back to new escrow contracts.

Large XRP Transfersย 

Meanwhile, Whale Alert tracked the movement of large amounts of XRP by high-net-worth investors. Unknown whales transferred the XRP tokens to leading cryptocurrency exchanges. Ripple was also involved in the latest round of large XRP transfers.ย 

According to Whale Alert, 300 million XRP, worth $138.56 million, were moved from an unknown wallet to Rippleโ€™s address.

Eight hours ago, an anonymous whale deposited 24,235,647 (24.2 million) XRP worth around $11.21 million to a Bitso address.ย 

Whale Alert also tracked the movement of 30 million XRP ($13.8 million) from an unknown wallet to a Bitso exchange address.ย 

60 million XRP tokens were also deposited to a Bitstamp address by an unknown whale.ย 

In reverse, a total of 60,921,933 (60.9 million) XRP valued at around $28.4 million were withdrawn from Bitstamp by an anonymous whale.ย 

Over the past 24 hours, Ripple whales moved 475,157,580 (475.15 million) XRP, worth $218.57 million at the current exchange rate.ย 

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Source: https://thecryptobasic.com/2022/11/02/ripple-locks-1-2-billion-xrp-in-escrow-without-releasing-any-tokens-this-month/?utm_source=rss&utm_medium=rss&utm_campaign=ripple-locks-1-2-billion-xrp-in-escrow-without-releasing-any-tokens-this-month