What’s Behind Ripple’s 310 Million XRP Move from Escrow? Here’s the Scoop!
The post What’s Behind Ripple’s 310 Million XRP Move from Escrow? Here’s the Scoop! appeared first on Coinpedia Fintech News
In a strategic move, Ripple Labs recently transferred 310 million XRP, valued at $198 million, from its Ripple (1) escrow wallet in December. This action has left approximately 26.34 million XRP, worth around $16.7 million, in the wallet.
XRP Escrow Dynamics
Meanwhile, there are under 40 billion XRP tokens in escrow, with a gradual release planned until 2027. Ripple Labs initially minted 100 billion XRP tokens before the launch of the XRP Ledger, and the company regularly sells them, following quarterly restrictions.
However, Ripple’s executives, who hold a significant share, face restrictions on selling tokens, and the impact of their sales are more significant compared to tokens burned for transaction fees, which are typically negligible.
While analyzing the recent technical aspects of XRP’s price reveals a lack of clarity in predicting its movements. Since July, the price has been tracing a symmetric triangle, a neutral pattern that suggests the potential for either a breakout or a breakdown.
Factors Influencing XRP Price
XRP’s unique position as both a store of value and a player in instant payments brings its own set of influences.
Despite concerns about its centralized nature, XRP has found practical applications in facilitating quick transactions, as evidenced by the National Bank of Georgia partnering with Ripple Labs for a central bank digital currency pilot.
US Judge Analisa Torres earlier this year dismissed the US Securities and Exchange Commission’s (SEC) claims regarding Ripple selling XRP as unregistered securities. The judge’s ruling brought clarity, specifying that sales to institutional investors, as opposed to retail investors, constituted unregistered securities offerings. This decisive verdict left the SEC without grounds for an appeal.
Amidst this legal backdrop, Ripple’s recent strategic transfer of XRP has ignited curiosity about the company’s intentions and the potential impact on the market dynamics of XRP.
