In the latest development concerning Ripple, a prominent crypto whale tracking service called Whale Alert has reported that the company has unlocked a massive sum of 1 billion XRP, valued at approximately $453.74 million, from its escrow account. The unlocking process was executed through a series of five transactions, as revealed by data provided by Whale Alert.
Ripple Unlocks 1 Billion XRP In Five Transactions
Breaking down the details, the first transaction involved unlocking 100 million XRP, followed by the second and third transactions, which saw 400 million and 200 million XRP being released from escrow. Additionally, Ripple removed an additional 100 million XRP in the fourth transaction and 200 million XRP in the fifth, all from its escrow account.
These notable transactions occurred precisely on July 1, 2023, at 00:00 (UTC), as confirmed by data obtained from Bithomp. It is worth mentioning that Whale Alert, due to an issue with the Ripple API, encountered a delay in reporting the transactions, leading to the information being shared on their Twitter handle on July 2, 2023.
Acknowledging the concerns of crypto enthusiasts, Whale Alert reassured the community that efforts are underway to address the API issue and ensure prompt reporting of future transactions.
It is important to note that Ripple’s monthly token unlock program has been a consistent practice since 2017. This regular unlocking of substantial amounts of XRP is carried out in a controlled manner to maintain the stability of XRP’s price. Ripple’s primary goal is to satisfy the demands of its On-Demand Liquidity (ODL) system.
Ripple’s monthly XRP unlock typically occurs on the first day of each new month. Despite opening 1 billion XRP from escrow, the company habitually returns a considerable portion of the funds into escrow within one or two days. This strategic move is intended to preserve the stability of XRP’s value and fulfill the requirements of Ripple’s ODL system.
It remains undisclosed whether Ripple has relocked any amounts of XRP in escrow following this recent unlocking event. Regarding market impact, the release of 1 billion XRP did not significantly affect the asset’s price. XRP is trading at $0.4808, reflecting a minimal decline of 0.1% within the past 24 hours.
XRP has experienced a slight decrease of 0.5% over the past seven days. The implications of these findings on the future trajectory of XRP’s value and Ripple’s token unlock program will be closely monitored by market participants and cryptocurrency enthusiasts alike.