San Francisco-based fintech giant Ripple Labs has conducted a routine monthly drain of one billion XRP tokens from escrow addresses, as reported by Whale Alert, a leading crypto tracking platform. This pre-planned move aims to preserve the liquidity and stability of the XRP market. Here are the details…
Ripple completes monthly token unlocking ritual
In a series of transactions spotted by Whale Alert, Ripple initiated the unlock with three significant transfers involving a total of one billion XRP worth $601.4 million in fiat currency. These releases, which have occurred on the first of each month since the beginning of 2018, contribute to supporting XRP liquidity on exchanges and the broader cryptocurrency market. Following development, approximately 800 million XRP is typically moved back into escrow by Ripple Labs until the next scheduled unlock. A consistent pattern is maintained every 30 days. Despite the regularity of these XRP releases, market observers note that they do not significantly impact the token price.
🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 500,000,000 #XRP (301,009,952 USD) unlocked from escrow at #Ripplehttps://t.co/nyX6GupB9w
— Whale Alert (@whale_alert) December 1, 2023
As a separate development, Whale Alert also emphasized that 27 million XRP, equivalent to 16,413,770 USD, was withdrawn from the Binance exchange. Contrary to initial speculation of an ill-timed purchase, further investigation revealed that this was an internal transfer within Binance, highlighting the importance of reviewing transaction details. Ripple’s move of 90 million XRP last week sparked community speculation about a potential megasale. However, it was later announced that the transaction targeted a small Ripple wallet, indicating a future strategic move outside the company.
🚨 27,000,000 #XRP (16,413,770 USD) transferred from #Binance to unknown wallethttps://t.co/jgR4Ekv0nI
— Whale Alert (@whale_alert) December 1, 2023
What are the latest developments in the SEC case?
Recent developments point to growing expectation within the XRP community regarding the resolution of the long-running legal battle between Ripple Labs and the US Securities and Exchange Commission (SEC). A closed meeting announced by the SEC fueled speculation about a potential deal. Ripple scored significant victories earlier this year when Federal Judge Torres ruled that XRP transfers to the secondary market could not be considered sales of securities.
Additionally, the SEC dropped personal charges against Ripple executives Brad Garlinghouse and Chris Larsen. These events have increased expectations for a solution to be reached in the near future. While the XRP market absorbs the impact of Ripple’s monthly token releases and awaits developments in the regulatory arena, the broader cryptocurrency community continues to monitor dynamic shifts in the fintech and regulatory landscape. Currently, the price of XRP is around $0.60, with an increase of 1.55 percent.
