Ripple is making moves to prevent the XRP price from crashing amid its legal woes with the Securities and Exchange Commission.
After unlocking over 1 billion Ripple (XRP) from its escrow wallet in the early hours of yesterday, the famous blockchain company has sent most of the unlocked tokens back to the escrow address.
Recent data from WhaleStats, a data analytics company that tracks large cryptocurrency transactions, shows that Ripple transferred 800 million XRP coins unlocked back to its escrow wallet yesterday.
The fund’s transfer occurred in two separate transactions, with each worth 400 million XRP ($329,440,486), respectively.
? ? ? ? ? ? ? ? ? ? 400,000,000 #XRP (329,440,486 USD) locked in escrow at Ripple Escrow wallet https://t.co/wD53q8spxY
— Whale Alert (@whale_alert) April 1, 2022
? ? ? ? ? ? ? ? ? ? 400,000,000 #XRP (331,739,202 USD) locked in escrow at unknown wallet https://t.co/RgDCEsnXMv
— Whale Alert (@whale_alert) April 1, 2022
The funds transferred back to Ripple’s escrow wallet are part of an effort by the team to mitigate any adverse price effects on the XRP token.
Meanwhile, before the company opted to lock some of the funds in its escrow wallet, Ripple also unlocked more tokens in the late hours of yesterday.
In three separate transactions spotted yesterday, the company unlocked a total of 600 million XRP worth approximately $500 million at the transaction time.
? ? ? ? ? ? ? ? 100,000,000 #XRP (82,275,361 USD) transferred from Ripple Escrow wallet to unknown wallethttps://t.co/oO9OptEl9L
— Whale Alert (@whale_alert) April 1, 2022
? ? ? ? ? ? ? ? ? ? 300,000,000 #XRP (249,471,240 USD) transferred from Ripple Escrow wallet to unknown wallethttps://t.co/gWUaOvRsvb
— Whale Alert (@whale_alert) April 1, 2022
? ? ? ? ? ? ? ? ? ? 200,000,000 #XRP (165,644,099 USD) transferred from Ripple Escrow wallet to Ripplehttps://t.co/tAmDXfelaT
— Whale Alert (@whale_alert) April 1, 2022
Unlike most cryptocurrency projects, Ripple uses a unique method of releasing XRP tokens to the market.
Instead of using the Proof-of-Work (PoW) or a Proof-of-Stake (PoS) model to produce new coins, Ripple, after conducting its Initial Coin Offering (ICO) for XRP, held a majority of the coin in an escrow wallet.
Of the 100 billion XRP total supply, the Ripple team held 55% of them, and at the end of the 2017 bull market, the company noted that it would unlock these coins gradually.
The move is to protect the token’s price from dumping as more supply of an asset usually ushers in lower prices.
To further protect the XRP price, Ripple usually sends most of the released tokens back to the escrow account, as seen yesterday.
Yesterday Ripple Labs released a whopping 1 billion XRP from its escrow wallet. The 1 billion XRP was unlocked from escrow in two separate transactions, representing 500 million XRP for each transaction.
However, Ripple is doing everything it can to keep its investors safe from more losses as its ongoing battle with the Securities and Exchange Commission (SEC) has already done more harm to them.
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