After the massive XRP exit from the Ripple wallet, the whales are on the move again! The biggest whale responsible for XRP transactions in the last 24 hours is the company itself, as always!
1 billion XRP exit from Ripple escrow
By a popular account that tracks major whale transactions, in the last 14 hours with found that some major crypto exchanges have transferred 70 million XRP.
At the same time, 1 billion XRP was exited from the escrow account today (May 1), as is the case on the first of every month.. Today, the San Francisco-based fintech company once again unlocked one billion XRP tokens, while simultaneously transferring 70 million XRP tokens along with crypto exchanges.
Ripple has launched another billion XRP!
This transaction took place in the form of two transfers, each of which moved 500 million tokens. Ripple does this automatically, usually on the first day of each month.. Shortly after this transaction, it sends most, or sometimes all, of the released XRP back to the escrow account.
So why is Ripple doing such a transaction?
Ripple’s XRP coin is one of the oldest projects in the cryptocurrency industry, launched in 2012. XRP has created a competitive environment with low transaction fees and fast transaction times.
However, despite these advantages, such practices of the company overshadowed the decentralization of the token.. Namely; Initially in 2017, the team decided to take 55% of the total supply of XRP.. However, he was considering using these tokens to build trust with institutions rather than launching them.. But Ripple has created 55 escrow accounts known as escrows, each holding 1 billion XRP.
The purpose here is to support the liquidity of the token on crypto exchanges.. It also sends some of it to its partners and customers and uses it to cover the company’s operational expenses.. Ripple claims that this implementation is essential for the development of the XRP ecosystem.
Locking a large portion of the XRP supply had a positive effect on prices at the time of implementation.. However, as more and more tokens are unlocked, the price of the asset has been negatively impacted.. Indeed, putting 1 billion XRP into circulation every month without significant demand negatively impacts prices.. To compensate for this, the vast majority, around 80-90%, sometimes all, of the tokens issued are locked back into the escrow account, usually the same day. At a price of $1.6 billion, he says.
While this practice has caused great concern among the community in the past, this practice, which is scheduled to occur on the first of every month, does not affect the price of the asset.
This Meanwhile, according to recent tweets by crypto whale tracker Whale Alert, 69.7 million XRP has been transferred by Ripple and several major crypto exchanges in the last 14 hours.
The platforms involved in these transfers are as follows:
- Bittrex
- Huobi
- Upbit
- Bitstamp
- BtcTurk
In these transactions, Ripple sent 7.6 million XRP to the Huobi exchange and 10 million XRP to Bitstamp, known as one of the company’s ODL corridors.
(*Bitstamp is Ripple’s XRP-based cross-border payment platform O. It is one of the partners of Ripple ODL that supports DL (On-Demand Liquidity) and mediates its reach to the UK remittance corridors.)
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