Ripple has carried out a noteworthy transaction, putting 500 million XRP into circulation while locking back 800 million XRP, a development described as unexpected. A report from Whale Alert, as posted on the X platform, disclosed that a large cryptocurrency transaction has been documented and published on the X platform.
In the publication, the transaction was carried out at 02:22 (UTC), the company transferred 400 million units of XRP into the “Ripple 12” wallet. The second transaction followed immediately with a transfer of 400 million units to the “Ripple 13” wallet.
The decision has sparked conjecture and interest among cryptocurrency enthusiasts, given that Ripple’s actions have consequences for both investors and the XRP market at large. Concerns have been raised by the XRP community concerning Ripple’s intentions and the possible effects on XRP’s pricing and market dynamics by the plan to release 500 million XRP into the market.
Some industry experts believe that Ripple might be aiming to take advantage of advantageous market circumstances or tackle issues related to liquidity on the XRP network. Others see the action as a calculated move to increase investor trust and promote the XRP.
Ripple Says it Has 41.3 Billion XRP From 2023
The uncertainty surrounding Ripple’s upcoming XRP releases makes the issue more intriguing as investors and market watchers anxiously await additional updates and announcements from the company. The XRP cryptocurrency is currently under increased regulatory scrutiny, and Ripple’s moves come at a moment of market uncertainty.
The United States Securities and Exchange Commission (SEC) sued Ripple in December 2020, claiming that the company had performed an unregistered securities offering and thereby contravening the securities law. The lawsuit caused a significant drop in the price of XRP and caused the XRP community woo altcoins as a possible investment alternative.
Ripple has also revealed that it has locked 41.3 billion units of XRP in escrow from September 30, 2023. The company released slightly over 200 million units of XRP each between October and November 2023. This development has summed up the total amount in escrow to 40.9 billion XRP.
Data Specifies The Names of Wallets And Amount Received
Since then, Ripple has been involved in legal disputes with the SEC to refute the accusations and rebuild trust in the XRP ecosystem. The lawsuit’s verdict is still in the air, and Ripple’s most recent deal has complicated things.
Explaining the latest move, Lele Jima wrote on The Crypto that Ripple’s recent moves show the company’s resolve to navigate the uncertain cryptocurrency market and chart a course toward sustainable growth and success despite the regulatory obstacles and legal uncertainty facing them and the XRP coin.
Ripple’s escrow system started in December 2017 and has locked up 55 Billion XRP so far. The company had initially planned to release at least a billion XRP in 55 months. Ripple has explained its intention of returning 800 million XRP as part of its conservative strategy, as it can influence the price positively.
XRP Experience Slight Decline in Price, Dip by 83%
XRP price has declined by $0.6 in the last 24 hours, causing it to dip to $0.5881, representing a 4% drop from the initial $0.6162 recorded from the intraday trading. A famous XRP influencer, Mr. Huber, has on X predicted that the XRP will experience a worse price dip. He said it will decline by up to 83%, presiding above the Automated Market Maker (AMM).
The move by Ripple to return a considerable amount of XRP to its escrow has yet to reflect on its price of XRP. This development rhymes with the broader bearish development in the market, most of which is primarily driven by the BTC’s price movement.
However, an unpopular transaction pattern from Ripple has emerged recently. In this new development, Ripple decided to stick to an intermittent release model instead of releasing the entire 1 billion XRP units at the beginning of the month.
Analysis from random quarters believes this may be caused by various transaction failures experienced by the company recently. However, the report analysis for the April transaction took effect without an error reported.