Ripple recently unlocked 500 million XRP tokens from its escrow for the month of May. This action has once again sparked concerns about how it could potentially impact the price of XRP, especially given the accusations of price manipulation that have been leveled against the company. It is worth noting that Ripple typically unlocks 1 billion tokens on a monthly basis, but this time they only unlocked half of that amount. The sheer volume of tokens being released raises red flags as to the potential negative effect it could have on the price of the altcoin if dumped on the market.
Further examination of the on-chain data reveals that 300 million XRP tokens out of the unlocked amount were sent to an escrowed account known as 2Not4co2op. The remaining 200 million XRP tokens were sent to another wallet, 4vt5x1o91m. The fact that these 200 million tokens were not sent to escrow raises questions about Ripple’s intentions, suggesting that they may have plans to sell them at some point in the future. However, as of now, no sales have been made with these tokens.
In addition to unlocking 500 million XRP tokens, Ripple also received the same amount from an unknown wallet identified as ymFZmKxEsF. However, instead of keeping these funds, Ripple promptly deposited them into an escrow account. This move has provided some reassurance to the community, as it signals that most of the XRP tokens acquired by Ripple have been locked back into escrow.
Following this latest token unlock, discussions surrounding Ripple’s alleged dumping of XRP tokens onto the market have reignited within the crypto community. Questions about whether Ripple’s sales impact the price of XRP have been ongoing, with some individuals, such as pro-XRP YouTuber Jerry Hall, accusing Ripple of intentionally suppressing the altcoin’s price through its sales. Conversely, Ripple’s Chief Technology Officer (CTO) has countered these claims by stating that the company’s XRP sales do not influence the token’s price.
Ripple has made efforts to assure the public of its sales practices, particularly amidst its legal battle with the Securities and Exchange Commission (SEC). The company has stated that it no longer engages in programmatic sales, which means its transactions are not directly impacting prices on crypto exchanges. Ripple has also indicated in court filings that it conducts its sales over the counter (OTC) to ensure compliance with securities laws and to avoid further scrutiny from regulatory authorities.
As of the time of writing, XRP is trading around $0.5, reflecting a price increase of over 2% in the last 24 hours based on data from CoinMarketCap. While there have been fluctuations in the price of XRP, the impact of Ripple’s actions on the market continues to be a topic of debate within the crypto community. It is essential for investors to conduct their research and consider the risks before making any investment decisions in the volatile crypto market.