• Ripple has released 1 billion XRP tokens from an unknown wallet.
• The recent action follows Ripple’s monthly routine when it unlocks tokens from a pre-timed Escrow system.
• Ripple mobilizes the fund to provide liquidity for its On-Demand Liquidity (ODL) partners.
Ripple Releases 1 Billion Locked XRP Tokens
Ripple, a California-based fintech company, has recently released 1 billion XRP tokens from an unknown wallet in two transactions of 500 million XRP each. This action is part of the company’s monthly routine when it unlocks tokens from its pre-timed Escrow system that was designed to lock some amounts of XRP in a smart contract over a pre-programmed time and create a predictable and stable XRP circulating supply.
Why Is Ripple Releasing Its Tokens?
Ripple aims to mobilize the unlocked funds to provide liquidity for its On-Demand Liquidity (ODL) partners. After the February 1 billion token release round, Ripple relocked 600 million XRP in two transactions in Escrow, while selling the unlocked assets to ODL partners and purchasing used XRP for its operations from the free market. Over the last three months in Q1 2023, Ripple sold XRP tokens worth $2.93 billion to its ODL partners with a net sale of $361 million within the reported period.
XRP Price Outlook
The latest Escrow unlock comes as XRP slipped from its $0.48 mark and is currently struggling to rebound amidst a market-wide downturn. However, odds are far beyond its momentum at this point as the token fights to break above the $0.50 price level again.
Ripple’s decision to release 1 billion locked XRP tokens from an unknown wallet follows their monthly routine when they unlock tokens from their pre-timed Escrow system in order to provide liquidity for their ODL partners and purchase used RPX for their operations on the free market. Despite current market conditions, there are still chances that this token will break above $0.50 soon enough if all goes according to plan with Ripple’s services and goals related with these releases.
Ripple’s proactive approach towards releasing locked up tokens helps them maintain circulation stability within their own ecosystem while providing liquidity for their users through ODL services but only time can tell how successful this strategy really is and what kind of effect it will have on price movements of RPX token itself