In a recent move, Ripple unlocked 500 million XRP from its escrow accounts, causing quite a stir in both the XRP community and the wider crypto world. This strategic decision, part of Ripple’s monthly routine, has had a noticeable impact on the price of XRP amid the ongoing ups and downs of the market.
Ripple’s strategy has backfired, and XRP has suffered badly. Will this move cause further price drops or is it a genuine effort to pay SEC $2B by May? Let’s find out.
Ripple’s Plan Revealed
Ripple split the unlocking into two transactions: 200 million in the first and 300 million in the second, as noted by Whale Alert, a blockchain tracker. However, this action didn’t come without consequences. It led to a decline in XRP’s price, sparking debates among investors and enthusiasts.
While releasing 1 billion XRP from escrow periodically is essential for meeting business needs, it often leads to temporary drops in XRP’s value due to the sudden increase in supply. Yet, Ripple remains committed to this strategy, aiming to support various uses of the token and establish it as a reliable asset for cross-border transactions.
Read More: Ripple News: Why is XRP Price Struggling To Hit $1?
What’s the Strategy at Play?
Despite causing some concerns among the XRP community, the recent unlocking of 500 million XRP highlights Ripple’s dedication to expanding the token’s adoption. By carefully managing liquidity and market dynamics, Ripple aims to navigate the unpredictable crypto landscape while advancing its goal of revolutionizing cross-border payments with XRP.
Community members have expressed surprise and skepticism about the timing of Ripple’s token release, speculating that it might be linked to covering legal expenses in Ripple’s ongoing SEC case. This aligns with Ripple’s broader objective of solidifying XRP’s role in facilitating international trade seamlessly.
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A Closer Look at the Moves
Adding to the intrigue, Ripple had unlocked another 500 million XRP earlier in April, often followed by locking away a significant portion to manage price fluctuations. Currently, XRP is trading at $0.6099, experiencing a slight dip of 1.13%, with a decrease in trading volume. Despite recent setbacks, XRP has seen gains over the past week, although it’s witnessing a monthly decline of 12%.
