Ripple's 1 Billion XRP Token Release From Escrow Sparks Market Reaction
- 王林Original
- 2024-09-04 18:14:10280browse
This token release is part of Ripple's long-term strategy for managing XRP supply and increasing market transparency.
After announcing its intention to release 1 billion XRP from escrow on September 1st, Ripple has now completed the transaction in three stages within minutes. The move resulted in a 2.29% price decrease, bringing XRP's value down to $0.5552.
The transaction occurred in three parts, with 500 million, 200 million, and 300 million XRP tokens being released at 02:46:22, 02:46:32, and 02:47:02 UTC, respectively. The total value of the released tokens exceeded $560 million.
This token release is part of Ripple's long-term strategy for managing XRP supply and increasing market transparency. David Schwartz, Ripple's Chief Technology Officer, has spoken about the company's escrow system, which was created to promote decentralization by gradually releasing 1 billion XRP monthly. However, the market's rapid reaction suggests investor anxiety about the impact of such massive releases on XRP's value.
Ripple CEO Brad Garlinghouse has not ruled out the notion of burning XRP tokens in escrow. This strategy might effectively remove tokens from circulation, easing concerns about token supply and market impact.
The transactions were enabled by the “Ripple 24” wallet, which has been functioning for more than seven years. The first 500 million tokens were released at 02:46:22 UTC. Despite the strategic aim behind this release, the large amount of XRP entering the market generated volatility, leading to a decrease in the token's price.
As part of Ripple's continuous efforts to regulate XRP supply, these releases are intended to increase market transparency. However, they continue to evoke conflicting reactions from investors, particularly when huge sums of XRP are unlocked in a single event.
As Ripple continues to make monthly releases, the crypto community constantly looks at the influence on XRP’s price and general market health. At the time of writing, XRP trading at $0.546 has dropped by 2.52% in the last 24 hours.
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