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Ripple (XRP) Unlocks 1B XRP Worth $240M From Escrow Account

Ripple (XRP) Unlocks 1B XRP Worth $240M From Escrow Account
  • Ripple (XRP) unlocked another 1 billion XRP worth $240 million.
  • Unused Ripple (XRP) will return back to the Escrow at the end of the month.
  • Ripple continued its 55-month Escrow contract.
  • XRP works both as a cross-border payments platform and as a means of transaction.

Ripple, a San Francisco-based cryptocurrency payment firm, unlocked another 1 billion XRP worth $240 million from an Escrow account. This provides more liquidity in its network.

Ripple unlocks 1 billion XRP tokens

Advanced crypto tracker Whale Alert showed that Ripple (XRP) unlocked its Escrow account in two transactions. Moreover, they unlocked 500 million XRP in each transaction. However, this slow-release is part of Ripple Labโ€™s strategy.

Rippleโ€™s first transaction unlocking 500 million XRP:

Rippleโ€™s second transaction unlocking 500 million XRP:

Ripple continues 55-month Escrow contract

Ripple’s slow release strategy began in 2017 when the firm decided that it would not sell all its 55 billion XRP tokens at once. As per Rippleโ€™s blog post, it locked 55 billion Ripple (XRP)ย  tokens in a protected Escrow account.

Moreover, itโ€™s strategy involves releasing 1 billion Ripple (XRP) every month. These tokens are sold to facilitate funding for its development, payments platform maintenance, and investment in promising startups. Following this, all unused Ripple (XRP) is sent back to the Escrow at the end of the month.

In their blog post, they explained that,

We use Escrow to establish 55 contracts of 1 billion XRP each that will expire on the first day of every month from months 0 to 54.

Furthermore, the release is part of a routinary Escrow release. The Escrow system ensures greater transparency and predictability over its uncirculating supply, preventing Ripple (XRP)ย  from dumping billions and as a result, crashing the price.

Moreover, Ripple (XRP) is one of the crypto assets outperforming this year. Hence, it is the fourth most valuable cryptocurrency by market cap. In addition, Ripple (XRP) works as both a cross-border payments platform and as a means of transaction.

According to CoinGecko, XRPโ€™s price is at $0.246 with a 24-hour trading volume of $1.27 billion, at the time of writing.

XRP Price Chart 1-Month (Source: TradingView)
XRP Price Chart 1-Month (Source: TradingView)

Recently, Ripple (XRP) has started a new project on its RippleNet called Line of Credit for ODL services. Furthermore, Ripple (XRP) has currently collaborated with Lemonway, a payment gateway in Europe for online marketplaces.

Crypto trading has enticed Ananthi Reeta to write for CoinQuora. She consistently contributes news and feature articles. She has covered several different blockchain and crypto niches, especially altcoins.