Ripple Unlocks 23rd Tranche of XRP From Escrow Account As It Looks Forward to The Swell Conference

November 4, 2019 / by Crypto.IQ

According to the escrow tracking service XRP Arcade, Ripple has unlocked one billion XRP from its escrow accounts. This move is part of Ripple’s monthly program that gives it access to the escrowed XRP.

Ripple unlocks 23rd tranche from escrow program

In December 2017, Ripple locked up around 55 billion XRP before releasing a schedule of unlocking 1 billion XRP each month. This was aimed at boosting investor confidence that Ripple could never release all the holdings at once. 

This was the 23rd tranche of ripple unlocked from its escrow program. They conceived the idea of the escrow program as a way of ensuring there is a consistent release of the pre-mined XRP assets at the beginning of every month. Having undergone 23 unlocking periods, the escrow account has decreased by 5 billion tokens. On average, this means that every month, ripple distributed or sold 227 million XRP.

How Ripple uses unlocked tokens

There are several ways in which the company can use the unlocked tokens. They can gift them, sell them to cover operational costs, or use them for incentive programs. The rest of the remaining XRP goes back to the escrow account. It is still unclear whether the unlocked tranche of digital assets will make its way to crypto exchanges, be redistributed, or go into Ripple’s OTC wallet.

Historically, some of the tokens have gone into donations with others are distributed for publicity. Equally, some have gone to banks to test transactional potential.

Similarly, some of the XRP could have gone into settling a disagreement with R3. However, for now, it is not clear on the conditions and the size of the settlement. R3 has been rumored to receive $1 billion in XRP, but this is not public knowledge.

There is also a significant amount of XRP in Jed McCaleb’s wallets. McCaleb, the co-founder of the project originally has around 9 billion coins and was limited to sell a fraction each day.

XRP price remains unchanged for lack of hype

With the Swell conference less than a week away, it has been considered as a way of hyping the digital tokens. However, the anticipated event has failed to create the necessary hype for XRP. The market price has stagnated at $0.29, with trading volumes remaining around $1.6 billion. Although XRP has a notoriously loyal user base, for now, they have not helped in increasing demand for XRP and thus push its price higher. 

XRP has continued to draw some skepticism this year as it has been one of the worst performers. Therefore any slight hype and subsequent pump could entice insiders to jump on the chance to sell tokens.