On-chain data recently revealed that Ripple has conducted its monthly escrow unlock for May. This news has sparked concerns among investors regarding how this action could potentially impact the price of XRP, especially given the accusations of price manipulation that Ripple has faced. In May, 500 million XRP tokens were unlocked from Ripple’s escrow, which is part of the 1 billion tokens that are typically unlocked each month. However, this time, only half of the usual amount was released. The volume of these tokens being unlocked always raises apprehensions about the potential negative consequences they might have on the altcoin’s price if they are dumped on the market.
A deeper analysis of the on-chain data shows that out of the 500 million XRP tokens unlocked, 300 million XRP was sent to an escrowed account labeled (2Not4co2op), while the remaining 200 million XRP tokens were transferred to a separate wallet (4vt5x1o91m). The fact that the 200 million XRP tokens were not sent to escrow raises speculation about Ripple’s intentions to sell them at some point, although no sales have been executed yet. Additionally, Ripple received another 500 million XRP tokens from an unidentified wallet (ymFZmKxEsF), but these tokens were promptly sent back to escrow. This reassures the community that the majority of XRP tokens received by Ripple have been secured in escrow.
Subsequent to the recent token unlock, the crypto community has reignited discussions about the allegations of Ripple dumping XRP on its holders. There have been longstanding debates about whether Ripple’s XRP sales actually influence the token’s price, with prominent figures such as crypto YouTuber Jerry Hall accusing Ripple of deliberately suppressing the altcoin’s price through its sales. On the contrary, Ripple’s Chief Technology Officer has stated that the firm’s XRP sales do not impact the token’s price. Furthermore, Ripple has ceased programmatic sales, indicating that its transactions no longer affect prices on crypto exchanges.
Ripple has also taken steps to ensure compliance with securities laws, particularly in its ongoing legal battle with the Securities and Exchange Commission (SEC). The firm disclosed in a recent court filing that it conducts institutional sales in an over-the-counter (OTC) manner to mitigate scrutiny from the Commission. These measures suggest that Ripple is committed to adhering to regulatory guidelines while managing its XRP sales.
At the time of writing, XRP is trading at approximately $0.5, reflecting a more than 2% increase in the last 24 hours based on data from CoinMarketCap. Despite the ongoing discussions and concerns surrounding Ripple’s XRP sales, the token’s price has shown resilience and upward movement in the market.
The monthly escrow unlock by Ripple continues to be a subject of scrutiny and debate within the crypto community. While concerns persist about the potential impact on XRP’s price, Ripple’s actions and statements reflect efforts to enhance transparency and compliance in its operations. Investors are advised to stay informed about these developments and conduct thorough research before making any investment decisions in the volatile crypto market.
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