Billion

<p>Yesterday, 1st September 2024, Ripple once again unlocked 1 billion XRP tokens from its escrow accounts. This operation immediately caught the attention of investors and market observers. Although routine, it once again raises questions about Ripple’s long-term strategy and its impact on the crypto market.</p>
<h2 id="h-une-gestion-deliberee-de-l-offre-de-xrp">A Deliberate Management of XRP Supply</h2>
<p>Ripple unlocked 1 billion <a href="https://www.cointribune.com/ripple-definition-quest-ce-que-le-ripple-xrp/" target="_blank" rel="noreferrer noopener">XRP</a> tokens from its escrow accounts on September 1st, at 10:50 UTC. This operation was valued at over 560 million dollars, according to data provided by Whale Alert, a crypto wallet monitoring service. David SCHWARTZ, Ripple’s CTO, <a href="https://www.cryptotimes.io/2024/09/01/ripple-unlocks-1-billion-xrp-tokens-heres-why/" target="_blank" rel="noreferrer noopener">explained that the XRP tokens released monthly aim to offer market predictability</a>. Since 2017, Ripple has locked 55 billion XRP in escrow accounts to control the circulating supply and limit fluctuations. SCHWARTZ also noted that these escrow accounts expire at the beginning of each month, but the XRP remains there until someone decides to cancel them.</p>
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<p>Despite this monthly release strategy, the actual number of tokens entering the market is often lower than the unlocked amount. This allows Ripple to manage the XRP supply more precisely, in accordance with market conditions and the company’s needs. However, the recent release coincided with a 2.4% drop in the price of XRP, which is currently trading at around 0.557 USD. This price drop has reignited debates about the effectiveness of this supply management strategy, with some experts questioning the transparency and motives behind Ripple’s regular releases.</p>
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<h2 id="a-reevaluation-of-escrow-effectiveness">A Reevaluation of Escrow Effectiveness</h2>
<p>The escrow strategy has been in place for several years at Ripple. However, David SCHWARTZ has expressed doubts about the relevance of this approach. According to him, he was initially “opposed to its creation” and continues to wonder if this method was the best option for the XRP network.</p>
<p>Brad GARLINGHOUSE, Ripple’s CEO, has also hinted that the company might explore more radical options, such as destroying the remaining tokens in the escrow accounts. If this were to come to fruition, it could cause a scarcity effect that might potentially boost the price of XRP.</p>
<p>In any case, Ripple stands at a strategic crossroads, with important decisions to be made to restore investor confidence following the recent decline in XRP and <a href="https://www.cointribune.com/en/crypto-is-ripples-victory-threatened-the-sec-could-turn-everything-upside-down-on-appeal/" target="_blank" rel="noreferrer noopener">the legal battles of recent months</a>.</p>

Crypto: Ripple Releases Another 1 Billion XRP… And It’s Still Not Over!

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