Ripple (XRP), which is now the third most valuable crypto asset by market capitalization, recently unlocked 1 billion XRP, worth over $240 million, from an escrow account.
Whale Alert, an advanced crypto tracker, monitored this movement, revealing it occurred in two different 500 million XRP transactions, in real-time.
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🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 500,000,000 #XRP (121,354,837 USD) unlocked from escrow at Ripple Escrow wallet
— Whale Alert (@whale_alert) October 1, 2020
🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 500,000,000 #XRP (121,331,788 USD) unlocked from escrow at Ripple Escrow wallet
— Whale Alert (@whale_alert) October 1, 2020
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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.
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Ripple’s concept involves releasing 1 billion XRP monthly to be sold in order to fund its payments platform maintenance and to invest in aspiring startups.
What you should know: Ripple is a privately-held fintech company that provides a global payment solution via its patented payment network called Ripple Network (also known as RippleNet).
- XRP is the digital token that has a circulating supply of 45 billion coins and a max supply of 100 billion coins.
- XRP still remains the only crypto gaining traction among global banks as Japan-based Mitsubishi UFJ Financial Group, with assets of more than USD 2.8 trillion, announced in November 2018 that, in cooperation with Ripple, it would provide an international money transfer service on the payment corridor from Japan to Brazil
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Other leading global banks using Ripple include Europe’s banking giant, HSBC Holdings Plc, with assets of about $2.5 trillion, which disclosed in 2019 that it would use the XRP payment solution.
XRP’s unique advantages over Bitcoin include the following;
- 1.XRP is x1000 faster than $BTC (3-4 seconds)
- 2.XRP is x1000 cheaper than $BTC (> $0.01)
- 3.XRP is better for the environment (no mining)
- 4.XRP is more scalable