• Thu. May 30th, 2024

Ripple Locks 800 Million XRP Amid Recent Price Increase

Maria Bartiromo

ByMaria Bartiromo

May 3, 2024

Ripple Labs has locked 800 million XRP coins each month as part of a routine to control the amount and distribution of XRP. This incident occurred amid a significant spike in XRP’s price, which has rekindled curiosity and conjecture among XRP users.

This methodical technique demonstrates Ripple’s meticulous control over the supply of its tokens. It is a component of a larger plan to regulate market liquidity and guarantee the stability of XRP’s value. The latest transactions occur amid the current legal tussle between Ripple and the Security and Exchange Commission (SEC).

The case intensified after the news that the SEC replied to a court filing. Also, the value of the cryptocurrency has increased significantly during the last week, rising by around 15%. Investors and cryptocurrency analysts have taken notice of this comeback, and many of them are investigating the possible causes of the price hike.

Michelle Evans Speaks, Questions 60 Million XRP Transfer to Anonymous Wallets 

Michelle Evans, a senior cryptocurrency analyst at CoinWatch, “Ripple’s monthly locking of a substantial portion of its XRP supply is a key element in maintaining stability and preventing market oversupply.” Evans added that the transfer of 60 million XRP to an undisclosed wallet introduces uncertainty, prompting inquiries regarding the company’s plans and its impact on XRP’s future price movements.

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Ripple has funded operations, made investments in business alliances, and encouraged the expansion of its ecosystem using its XRP reserves. In light of this, the transfer of 60 million XRP can signify impending or ongoing commercial ventures that call for more funding. The move may also be connected to treasury management or internal reorganization.

Evans also explained that although the transfer is questionable, Ripple’s overarching plan to lock and regulate the quantity of XRP has been widely viewed as beneficial for the token’s stability. Ripple wants to avoid large-scale dumps that could cause price volatility and erode investor confidence by capping the quantity of currency in circulation.

He (Evans) also added that “the XRP community is known for its enthusiasm and active engagement, so it’s not surprising that this latest move by Ripple has generated such speculation.” He continued that “While we can’t be sure of the exact reason for the 60 million XRP transfer, it’s essential to look at the bigger picture and consider how Ripple’s approach to token supply management affects the broader market.”

Ripple Says Current Move  Part of It’s Financial Strategy 

Ripple has not officially announced the purpose of the 60 million XRP. Ripple has strategically moved to lock up 800 million XRP into an escrow account. The transaction that moved the assets into an escrow was done in three phases: 500 million, 100 million, and 200 million.

This transfer sequence is evidence of prudent management of its token supply. The movement of the XRP into escrow happened at a time when Ripple carried out other significant transactions. This strategy is part of Ripple’s already structured plan to release these tokens monthly.

The plan was that some portion of the cryptocurrency would be unlocked and released to enhance the liquidity in the market while the rest was pushed back to the escrow. Maintaining this strategy is to ensure that the company’s cross-border liquidity transactions and sustainable market control are maintained.

Ripple Receives Over A Billion XRP Tokens From Different Addresses

Industry experts have argued that such routine releases can influence short-term price movement, probably because of the increased supply at a time. It was also described as Ripple’s method of ensuring sustainability in the cryptocurrency market.

Before the 800 million XRP was locked in, Ripple received over a billion XRP from different addresses, contributing to the market speculation. A report from CoinPedia also states that Ripple moved 60 million XRP to two other anonymous wallets, each having between 30 million XRP – this has further increased investors’ expectations of the XRP.

 Meanwhile, XRP, as at press time, gained 4.30% to hit $0.51 today. This is happening amid the ongoing price fluctuations in Ethereum and Bitcoin. Also, XRP trading volume has dropped by 16.39%, representing $1.37 billion in the last 24 hours.

Maria Bartiromo

Maria Bartiromo

Maria Bartiromo is a renowned news writer and journalist, celebrated for her insightful reporting and authoritative voice. With a career spanning years, she has established herself as a trusted source of accurate and comprehensive news analysis, keeping readers informed on vital global developments.

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