Ripple (XRP), which is now the third most valuable crypto asset by market capitalization, recently unlocked 1 billion XRP, worth about $269 million, from an escrow account.
Whale Alert, an advanced crypto tracker, monitored this movement, which occurred in two different 500 million XRP transactions, in real-time.
🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 500,000,000 #XRP (134,917,611 USD) unlocked from escrow at Ripple Escrow wallet
— Whale Alert (@whale_alert) August 1, 2020
It then set up a plan to release about 1 billion XRP monthly for sale to be used as funding for its operations, and to invest in startups of interest, with the rest kept back in the escrow accounts.
What this means: In simple terms, the implication of this is more liquidity in the Ripple network, as more investors will now have access to those XRP.
What you show know: Ripple (XRP) plays dual roles as a payment platform and a currency. The platform is an open-source platform that was created to allow quick and cheap transactions.
XRP outpaced Tether to become the third most valuable crypto asset in dollar terms, at around $14.3 billion. Its trading volume was about $3.9 billion as at the time this report was written.
Unlike its major crypto rival, Bitcoin, which was never intended to be a simple payment system, Ripple has gained the attention of major global banks such as Standard Chartered, and Barclays for international transactions worldwide.
Why Ripple is gaining popularity: A few months ago, the U.S Consumer Financial Protection Bureau expressed excitement over the idea of Ripple as a tool for bringing simplicity and openness to the financial industry. It said:
“To the degree banks and credit unions increase their reliance on closed network payment systems for sending remittance transfers and other cross-border money transfers, the Bureau notes that this could result in greater standardization and ease by which sending institutions can know exact covered third-party fees and exchange rates.”