23 April, 2024

Ripple Unlocks 500 Million XRP from Escrow to Unknown Wallet

01 Apr, 2024

01 Apr, 2024

  • Unknown address unlocks 500 million XRP, straying from Ripple’s norm.
  • Ripple’s escrow balance is now at 4.5 billion XRP, with a May unlock anticipated.
  • SEC filing pressures Ripple with a $1.95 billion penalty, sparking speculations for XRP sales.

On April 1, blockchain tracking platform Whale Alert reported that 500 million XRP, valued at $314.87 million, was unlocked from escrow to an unknown wallet. Ripple typically executes these escrow unlocks to its own wallets. As such, the recent unlock to the unknown wallet marks a deviation from the usual.

The transaction was executed at 02:51 (UTC), with the receiving Ripple address holding the entire amount, with no subsequent sales. The escrow balance for this wallet now stands at 4.5 billion XRP, with anticipation building for the next scheduled unlock on May 1.

Historically, Ripple has adhered to its plan of unlocking 1 billion XRP each month. However, there have been exceptions lately, such as March’s 500 million XRP release and subsequent relocking of 800 million XRP. An attempt to unlock another escrow in March was unsuccessful for technical reasons. Yet, Ripple managed to fulfill its 1 billion XRP quota in February with a late-month execution on February 25.

So far, only January has witnessed Ripple’s expected monthly escrow pattern of releasing and then relocking a portion of the XRP. With 500 million XRP already released this April, it remains uncertain if Ripple will mirror February’s release strategy. Following the latest unlock, Ripple’s escrow holdings are approximately 39.5 billion XRP, distributed across eight wallets.

At press time the price of XRP has dropped slightly by 1.8% over the last 24 hours, trading at $0.6154. Investor interest has also fluctuated over the past week and month, with the price reaching highs of $0.7. Derivative market data from Coinglass indicates a slight decline in open interest and a significant drop in trading volume, suggesting a cautious investor approach towards XRP.

Amidst these developments, Ripple is facing a potential $1.95 billion in fees and penalties, as per a recent filing from the United States Securities and Exchange Commission (SEC). The SEC’s demands come with a 30-day compliance window post-court ruling. This has sparked speculations of Ripple coming under pressure to liquidate part of its XRP holdings, especially those in escrow, to meet the financial requirement.



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