Ripple’s escrow system unlocks 1 billion XRP tokens on June 1.
The Escrow system was created back in December 2017.
Ripple initially placed 55 billion XRP in escrow accounts.
Ripple Labs unlocked 1 billion XRP coins from their escrow. The unlocking process took place through three separate transactions on June 1, as reported by Whale Alert. The first transaction involved the release of 300 million XRP tokens at exactly 00:00 AM (UTC).
Shortly after, another 200 million XRP tokens were unlocked in a subsequent transaction. Lastly, Ripple unlocked an additional 500 million XRP tokens. As of the time of the announcement, the total value of the 1 billion XRP coins was estimated to be around $508 million.
500,000,000 #XRP (257,991,147 USD) unlocked from escrow at unknown wallethttps://t.co/ftLp20BEyL
— Whale Alert (@whale_alert) June 1, 2023
The recent unlocking of XRP coins is in line with Ripple’s monthly XRP distribution strategy, which has been in place since 2017. This strategy involves releasing XRP coins from escrow accounts in a controlled manner, aiming to preserve the stability of the asset’s price.
The escrow system used by Ripple allows it to control the release of XRP into the market. The approach was designed to keep Ripple from flooding the market with XRP and forcing the price down. The mechanism operates by locking up a specific quantity of XRP and gradually releasing it over time.
Ripple has escrowed 55 billion XRP, which will be distributed over a 55-month period. The first batch of XRP was distributed in December 2017, and the final batch will be distributed in December 2023. On May 1, 2023, Ripple executed its last XRP escrow release, unlocking 1 billion XRP tokens from the escrow account.
However, the token release hasn’t affected the price of XRP. According to CoinMarketCap data, XRP is trading at $0.5058, with no major fluctuations in the last 24 hours.
The post Massive XRP Token Release: 1B Tokens Unlocked from Escrow appeared first on Coin Edition.
