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Ripple Labs releases 1 billion XRP from escrow

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TL;DR

  • Ripple Labs unlocked 1 billion XRP from its escrow account, as reported by Whale Alert.
  • 50 million XRP was transferred from Ripple to an unknown address shortly before the main release.
  • Ripple consistently unlocks tokens on the first day of each month, a practice initiated in December 2017 to stabilize the XRP market.

Ripple Labs, the renowned blockchain firm, has once again unlocked a substantial 1 billion XRP from its escrow account. This information came to light through Whale Alert, a top-tier crypto whale monitoring service.

The unlocking process was executed in three distinct transactions on October 1, right at the stroke of midnight UTC. The initial transaction consisted of a whopping 500 million XRP, having a market value of approximately $299.9 million. This was closely followed by a subsequent release of 400 million XRP, valued at around $239.92 million. The final installment in this series was a release of 100 million XRP, pegged at nearly $59.98 million. Moreover, just a little before these significant releases, there was a notable movement of 50 million XRP. These coins shifted from one of Ripple’s primary accounts to an unidentified recipient.

Whale Alert’s records indicate that this latter transaction transpired just a few minutes before midnight at 23:26 UTC. As a consequence of these transactions, the Ripple-associated address currently boasts a balance of 166.34 million XRP. However, the mystery recipient’s address saw its balance jump to a commendable 54.72 million XRP.

Now, one might wonder about the rationale behind these releases. Significantly, this practice isn’t a one-off event. Ripple has made it a routine to unlock these tokens on the first day of every month. This strategy was inaugurated back in December 2017, and its principal aim was to infuse a degree of stability into the XRP market ecosystem.

Back in the day, Ripple secured a staggering 55 billion XRP in a uniquely designed escrow mechanism within the XRP Ledger. This system was configured to consistently release a minimum of 1 billion XRP every month over a span of 55 months. Additionally, in a bid to shield the XRP price from erratic market movements, Ripple typically re-locks a significant portion of the released tokens. In numerous instances, up to 800 million XRP out of the 1 billion released has been sent back to escrow.

In related developments, Ripple’s Q3 2023 market report is now out in the public domain. The report highlights a peak in XRP’s market volatility on July 13. This tumult was triggered when a federal court proclaimed that XRP would not be classified as a security. At the end of the quarter, XRP’s volatility rate stood at 40%, registering a notable 90-day low.

Furthermore, the report sheds light on Binance‘s predominant role in the XRP market for Q3 2023. The exchange was responsible for an impressive 60% of the total XRP trade volumes on all exchange platforms during the last quarter.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Mutuma Maxwell

Maxwell especially enjoys penning pieces about blockchain and cryptocurrency. He started his venture into blogging in 2020, later focusing on the world of cryptocurrencies. His life's work is to introduce the concept of decentralization to people worldwide.

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