- 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 Lab’s strategy.
Ripple’s first transaction unlocking 500 million XRP:
🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 500,000,000 #XRP (119,916,616 USD) unlocked from escrow at Ripple Escrow wallet
— Whale Alert (@whale_alert) November 1, 2020
Ripple’s second transaction unlocking 500 million XRP:
🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 500,000,000 #XRP (119,916,616 USD) unlocked from escrow at Ripple Escrow wallet
— Whale Alert (@whale_alert) November 1, 2020
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 Ripple’s blog post, it locked 55 billion Ripple (XRP) tokens in a protected Escrow account.
Moreover, it’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) 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, XRP’s price is at $0.246 with a 24-hour trading volume of $1.27 billion, at the time of writing.
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.
