Ripple’s main Escrow wallet blocks 1.2 billion XRP and releases no new tokens

XRP is up - Here are three reasons why this is happening

Ripple Escrow Wallet is experiencing very unusual behavior. According to Whale Alert reports, on the first day of November, the company’s operating wallet was injected with a significant amount of XRP. So far, it has been used to release tokens to the market, not the other way around.

1.2 billion XRP locked up again in Ripple’s main Escrow wallet

Following the data shared on Twitter by the Whale Alert profile, we can observe that the first of November was an exceptional day in terms of changes in the wealth of the Ripple Escrow portfolio. Recall that the monthly rule of behavior of the wallet was the release of 1 billion XRP. 800 million of this was generally returned to Escrow again, with the remaining 200 million to cover the company’s operating expenses. This time, such behavior did not take place. In fact, the opposite happened.

Thus, on November 1, there were 3 separate incoming transactions. The first was 500 million XRP, with a total value of $230.36 million. Moments later, another took place, amounting this time to 200 million XRP. And just after that, a third, again amounting to 500 million XRP.

A rule that has lasted for years

Ripple launched its XRP release program back in 2017. Initially, as much as 55% of the coin’s supply was blocked in the famous Escrow wallet. At the same time, the company’s representatives announced to the world that they would release 1 billion XRP to the market every month. The move caused a very large impact on the unit price. It even led to the establishment of an ATH of nearly $3.4. As we know, it remains valid to this day.

The situation changed after the initiation of legal proceedings, triggered by the accusations that the SEC made against Ripple. Recall that in 2020 the US Securities and Exchange Commission found that the Silicon Valley company was trading unregistered securities. As a result, barely 200 million of the 1 billion tonne released went on sale. The remaining 800 million has since gone back into Escrow. This was an effort by the company to keep XRP priced high.

Ripple with lowest XRP holdings ever

Noteworthy here is the report that Ripple issued for the third quarter of this year. It shows that the company has less than 50% of its total XRP supply in its accounts for the first time ever. The sales results are also interesting. This is because in Q3, coins with a total value of $100 million less were disposed of than was the case in Q2. At the same time, the value of purchases increased. In Q2 they amounted to $1.7 billion, while in Q3 it was already $2.5 billion.

Disclaimer: Blockbulletin does not take accountability of investments based on the information of the website. We highly advice readers to make extensive research prior to any invest

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