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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Ripple Releases 1 Billion Tokens From Escrow, XRP Declines By 5%

Semilore Faleti
Semilore Faleti
1 year ago
3 mins read
ripple

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Prominent crypto payment company Ripple has released a huge amount of XRP from its escrow wallet into circulation. According to a report by blockchain tracker Whale Alert, Ripple transferred a total of 1 billion XRP tokens valued at $513.37 million out of its escrow account in the early hours of the day.

Whale Alert states that this transfer occurred over three transactions, with Ripple releasing 500 million XRP worth $271. 05 million from an unknown wallet in the first transaction. Thereafter, 200 million XRP and 300 million XRP were released respectively from the wallet bringing the total transfer to 1 billion XRP tokens. 

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1 year ago

The Ripple 55-Month Escrow Project

Interestingly, this release of 1 billion XRP by Ripple is not a new or unusual event in the crypto space, as it occurs virtually every month. In 2017, Ripple released a statement laying out its intention to lock up 55 billion XRP tokens using the Escrow feature on the XRP Ledger.

Ripple Labs explained that 1 billion XRP would be released monthly to incentivize investors and keep the interest around the token. At the start of 2018, Ripple began implementing its plan and has been consistently barring a two-month pause in October-November 2022.

That said, it is worth stating that not all 1 billion XRP is left in circulation after release. A huge chunk of the newly released tokens, between 600-700 million XRP, are usually returned back to the Escrow wallet a few days after the release. 

Therefore, it is expected that a large portion of the latest XRP release will be captured from circulation in the next few days, perhaps before the end of next week.

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XRP Down By 5%

Reacting to this 1 billion token dump on the market, XRP appears to be slightly affected. Data from Coingecko shows that the altcoin has lost 5.1 % of its value in the last 24 hours. 

ripple

XRP trading at $0.50556 | Source: XRPUSD chart on Tradingview.com

However, looking at its broader performance,  XRP has been one of the most impressive tokens in recent weeks. The altcoin has gained 19.2% in the last week and 32.4% in the last month. 

That said, XRP remains a hot topic in the crypto space due to the ongoing court case between Ripple and the United States Securities and Exchange Commission (SEC). In 2020, the SEC filed a lawsuit against Ripples for issuing XRP, alleging the token was an unregistered security.

Over the last two years, there has been a hot legal battle between both entities with many twists and turns. Although SEC has never lost a crypto lawsuit case, there is growing positive sentiment among investors that Ripple will emerge victorious when judgment is eventually passed – possibly this month. 

At the time of writing, XRP is trading at $0.50, having gone down by 1.2% in the last hour. With a market cap value of $26.27 billion, XRP remains the sixth-biggest cryptocurrency in the market. 

Featured Image: Financial Times, chart from Tradingview
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Semilore Faleti
Semilore Faleti

Semilore Faleti

Semilore Faleti is a cryptocurrency writer specialized in the field of journalism and content creation. While he started out writing on several subjects, Semilore soon found a knack for cracking down on the complexities and intricacies in the intriguing world of blockchains and cryptocurrency.

Read more

Semilore is drawn to the efficiency of digital assets in terms of storing, and transferring value. He is a staunch advocate for the adoption of cryptocurrency as he believes it can improve the digitalization and transparency of the existing financial systems.

In two years of active crypto writing, Semilore has covered multiple aspects of the digital asset space including blockchains, decentralized finance (DeFi), staking, non-fungible tokens (NFT), regulations and network upgrades among others.

In his early years, Semilore honed his skills as a content writer, curating educational articles that catered to a wide audience. His pieces were particularly valuable for individuals new to the crypto space, offering insightful explanations that demystified the world of digital currencies.

Semilore also curated pieces for veteran crypto users ensuring they were up to date with the latest blockchains, decentralized applications and network updates. This foundation in educational writing has continued to inform his work, ensuring that his current work remains accessible, accurate and informative.

Currently at NewsBTC, Semilore is dedicated to reporting the latest news on cryptocurrency price action, on-chain developments and whale activity. He also covers the latest token analysis and price predictions by top market experts thus providing readers with potentially insightful and actionable information.

Through his meticulous research and engaging writing style, Semilore strives to establish himself as a trusted source in the crypto journalism field to inform and educate his audience on the latest trends and developments in the rapidly evolving world of digital assets.

Outside his work, Semilore possesses other passions like all individuals. He is a big music fan with an interest in almost every genre. He can be described as a “music nomad” always ready to listen to new artists and explore new trends.

Semilore Faleti is also a strong advocate for social justice, preaching fairness, inclusivity, and equity. He actively promotes the engagement of issues centred around systemic inequalities and all forms of discrimination.

He also promotes political participation by all persons at all levels. He believes active contribution to governmental systems and policies is the fastest and most effective way to bring about permanent positive change in any society.

In conclusion, Semilore Faleti exemplifies the convergence of expertise, passion, and advocacy in the world of crypto journalism. He is a rare individual whose work in documenting the evolution of cryptocurrency will remain relevant for years to come.

His dedication to demystifying digital assets and advocating for their adoption, combined with his commitment to social justice and political engagement, positions him as a dynamic and influential voice in the industry.

Whether through his meticulous reporting at NewsBTC or his fervent promotion of fairness and equity, Semilore continues to inform, educate, and inspire his audience, striving for a more transparent and inclusive financial future.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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