XRP Drops 5% as Ripple Unlocks 1 Billion Tokens From Escrow

April 2, 2023 Angelo Castelda Cryptocurrency News 0

How Binance's XRPL Network Outage Sparked a Backlash from XRP Army
XRP Army Demands Explanation from Binance for XRPL Network Freeze

Ripple, the leading crypto payment company, has released massive XRP tokens from its escrow wallet into the market.

This move has caused some negative reactions from the XRP community and investors, as the token price has dropped by 5% in the last 24 hours.

According to Whale Alert, a blockchain tracker service, Ripple transferred 1 billion XRP tokens worth $513.37 million from its escrow account in three transactions.

The first transaction involved 500 million XRP tokens worth $271.05 million from an unknown wallet. The second and third transactions involved 200 million and 300 million XRP tokens from the same wallet.

This release of 1 billion XRP tokens is part of Ripple’s 55-month escrow project that started in 2017. The project aims to lock up 55 billion XRP tokens in escrow and release 1 billion XRP tokens monthly to fund Ripple’s operations and incentivize its partners and customers.

However, not all released tokens are left in circulation, as Ripple usually returns a large portion of them back to the escrow account after a few days.

The impact of this monthly release on the XRP price has been a matter of debate among the crypto community. Some argue that it creates selling pressure and dilutes the token’s value, while others claim that it provides liquidity and stability for the market.

In any case, the latest release seems to have coincided with a decline in the XRP price, as it has lost 5% of its value in the last day and is currently trading at $0.50.

XRP is also facing challenges from the ongoing lawsuit between Ripple and the US Securities and Exchange Commission (SEC).

The SEC accuses Ripple of selling unregistered securities in the form of XRP tokens since 2013 and seeks to stop its distribution and impose penalties on Ripple and its executives.

Ripple denies the allegations and argues that XRP is a currency, not a security. The case is still ongoing and could have significant implications for the future of XRP and the crypto industry.

Despite these hurdles, XRP remains one of the world’s most popular and widely used cryptocurrencies. It has a market capitalization of $26.27 billion and ranks as the sixth-largest cryptocurrency by market cap.

It also has a loyal fan base and a strong network of partners and customers who use it for cross-border payments and remittances. XRP has also shown some impressive performance in recent weeks, gaining 19.2% in the last week and 32.4% in the last month.

Related Stories:

Emmer Introduces Bill Seeking SEC Chair Gensler's Removal, Targeting Crypto RegulationRipple CEO Brad Garlinghouse: XRP Can Outshine Bitcoin and Solve a Billion-Dollar Problem SEC Chair Gensler Faces Backlash from Ripple CEO Brad Garlinghouse over Crypto Securities ClassificationSEC Chair Gensler Faces Backlash from Ripple CEO Brad Garlinghouse over Crypto Securities Classification Ripple CEO and General Counsel Slam SEC in Twitter Rant Amid Ongoing LawsuitRipple CEO and General Counsel Slam SEC in Twitter Rant Amid Ongoing Lawsuit XRP Price Explodes Over 70% as Judge Rules In Favor of Ripple in SEC Case XRP, the native cryptocurrency of the Ripple network, has surged by more than 70% in the past 24 hours, reaching its highest level since May. The price spike came after a U.S. judge denied the Securities and Exchange Commission's (SEC) request to access Ripple's legal communications. What is the SEC's lawsuit against Ripple? The SEC filed a lawsuit against Ripple and its executives in December 2020, alleging that they sold $1.3 billion worth of XRP as unregistered securities. Ripple has argued that XRP is not a security, but a digital asset that is used for cross-border payments and remittances. The company also claimed that the SEC did not provide fair notice to the market about its regulatory status. How did the judge rule in favor of Ripple? On June 30, U.S. Magistrate Judge Sarah Netburn denied the SEC's motion to compel Ripple to produce documents related to its legal advice on XRP. The judge ruled that Ripple's communications with its lawyers are protected by attorney-client privilege, and that the SEC failed to show a "substantial need" to access them. The judge also noted that the SEC's request was "overly broad" and "disproportionate". What does this mean for XRP and the crypto market? The judge's ruling is seen as a major victory for Ripple and a setback for the SEC, as it could weaken the agency's case against the company. The ruling also boosted the confidence of XRP investors, who have been waiting for a resolution of the legal dispute. XRP's price jumped from around $0.6 to over $1 in a matter of hours, making it one of the best-performing cryptocurrencies in the market. The rally also lifted other altcoins, such as Stellar, Cardano, and Dogecoin. What are the next steps in the lawsuit? The lawsuit is still ongoing, and both parties are expected to continue their discovery process until August 31. The SEC has also filed a motion to extend the deadline for fact discovery by 60 days, citing the complexity of the case and the need for more time to review documents. Ripple has opposed this motion, arguing that it would cause further harm to its business and customers. The judge has not yet ruled on this motion. Conclusion XRP's price has exploded over 70% as a U.S. judge ruled in favor of Ripple in its lawsuit with the SEC. The ruling denied the SEC's request to access Ripple's legal communications, which are protected by attorney-client privilege. The ruling is seen as a major win for Ripple and a boost for XRP investors, who have been waiting for a positive outcome of the case. The lawsuit is still ongoing, and both parties are expected to continue their discovery process until August 31.XRP remains outside Ripple’s Liquidity Club even after 5 months? Here’s how Ripple CTO reacts Ripple vs. SEC: what comes next?Ripple vs. SEC: What comes next? Ripple Chief Monica Long Makes the Case for Crypto in the New York TimesRipple vs SEC Lawsuit Latest: A Pro-Ripple Lawyer Reveals Shocking Facts A Message from Ripple's CEO to the XRP Community Amidst CrisisA Message from Ripple’s CEO to the XRP Community Amidst Crisis Dubai scraps 30% tax on alcohol sales amid economic reboundDubai drops 30% tax on alcohol sales to woo tourists
About Angelo Castelda 98 Articles
Angelo Castelda works as a feature writer in Asia. In his free days, he likes to read books and magazines about the latest architectural news and trends. This ultimately made him fall in love with architecture and now spends most of his time writing about it.

Be the first to comment

Leave a Reply

Your email address will not be published.


*