XRP, which is now the fourth most valuable crypto asset by market capitalization, has had 800 million XRP taken back from an escrow account to Ripple in an unprecedented manner.
What you should know: Whale Alert, an advanced crypto tracker, monitored this movement, which occurred in two different XRP transactions, in real-time.
READ: XRP drops 10%, biggest fall since December 4
500,000,000 #XRP (119,676,702 USD) transferred from Ripple Escrow wallet to Ripple
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🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 500,000,000 #XRP (119,676,702 USD) transferred from Ripple Escrow wallet to Ripple
— Whale Alert (@whale_alert) January 1, 2021
300,000,000 #XRP (72,394,894 USD) transferred from Ripple Escrow wallet to Ripple
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🚨 🚨 🚨 🚨 🚨 🚨 🚨 300,000,000 #XRP (72,394,894 USD) transferred from Ripple Escrow wallet to Ripple
— Whale Alert (@whale_alert) January 1, 2021
READ: Ripple opens last billion XRP for 2020, worth over $662 million
What this means: Such a move boosted the value of the Crypto asset by gains of over 11%, as many Crypto strategists see such as tightening XRP’s market liquidity
- At the time of drafting this report, XRP traded at $0.237552 with a daily trading volume of $5,678,463,437. XRP is up 10.98% for the day
To provide additional predictability to the XRP supply, Ripple has locked 55 billion XRP (55% of the total possible supply) into a series of escrows. These escrows are on the ledger itself and the ledger mechanics, enforced by consensus, control the release of the XRP.
The escrow consists of independent ledger escrows that release a total of one billion XRP each month over the next 55 months. This provides an upper limit on the amount of new XRP that can be brought into circulation. The amount of XRP actually released into circulation will likely be much less than this. Any additional XRP leftover each month will be placed into a new escrow to release in the first month in which no escrow currently releases.
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However, a top Crypto expert, Pentoshi in a message to his followers recently via Twitter expects XRP to lose roughly half of its remaining value in the near future.
“In my opinion, the dust will settle in the next few weeks/months somewhere in-between $0.07-$0.12.Liquidity will dry up. ODL can’t be used on Bitstamp. More exchanges will halt trading. Larger players will continue to de-risk and get rid of excess inventory. Just the way I see it.”
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You have no understanding of XRP escrow and the Ripple sales. There was no buy back here!
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