XRP Unlocks 1 Billion Tokens From Its Escrow Wallet

The XRP news today showed that Ripple lost 66% against BTC in 2019. However, the latest update comes with a different fact and illustrates that as XRP unlocks 1 billion tokens from its Escrow wallet, the price of the cryptocurrency is stable.

This was a major milestone for Ripple (XRP) and its adoption. The blockchain payment network tied to the XRP altcoin has begun 2020 quite well, releasing funds from its escrow worth approximately $192 million in USD.

As scanned from the XRP blockchain by the monitoring resource Whale Alert, the data caught the latest consignment of XRP tokens which forms one instalment of a pre-planned release schedule that Ripple began in 2017.

A blog post at the time showed that they would lock up 55 billion in XRP, releasing funds each month over 55 months. This month, XRP unlocks 1 billion from its escrow wallet and as the team said, the reason for that was to incentivize investors to keep the interest and usage of XRP consistent.

“We use Escrow to establish 55 contracts of 1 billion XRP each that will expire on the first day of every month from months 0 to 54. As each contract expires, the XRP will become available for Ripple’s use,” the blog post read.

In the post, Ripple continued and said that one “can expect us to continue to use XRP for incentives to market makers who offer tighter spreads for payments and selling XRP to institutional purchasers.”

Prior to the cryptonews that XRP unlocks new amounts, the team behind the coin was selling around $300 million in XRP each month. In 2019, however, the sell-offs intensified and Ripple disposed of more tokens last year than any other. This is how Ripple lost 66% against BTC and why it has been at a low point in December this year.

This week, we also saw the news that Ripple’s chief technology officer David Schwartz claimed that XRP purchases did not actually make Ripple any richer. At the asme time, he described the company’s sell-offs as “negligible.”

The price of XRP barely reacted to the news on how XRP unlocks new billions in the token. It is now steady at $0.1936 with a 1.11% increase on the day.