Whale Alert, a platform that monitors blockchain activity and shares it publicly, has reported that 400 million XRP tokens have been withdrawn from an escrow wallet. The identity of the wallet that released these Ripple-linked coins, valued at $213.9 million, has not been disclosed.
This transaction stands out from typical XRP escrow wallet transactions conducted by Ripple Labs due to the non-disclosure of the wallet’s identity. Last month, a similar scenario occurred when 500 million XRP tokens, worth approximately $314.87 million at the time, were withdrawn from an undisclosed escrow wallet.
Despite speculation about the wallet’s identity, it is important to note that Ripple had previously locked 55 billion coins in an escrow wallet and has been releasing about 1 billion coins monthly as part of a regular strategy. This strategy aims to regulate the market dynamics of the altcoin, increasing its supply in the market which can impact its price. XRP-supporting lawyer Bill Morgan criticized this approach, citing a lack of innovation.
In a recent development, Ripple has withdrawn another 800 million XRP tokens from escrow. This transaction caused XRP’s price to drop by 2.74% to $0.4995, while the trading volume increased by 31.66% to $1.37 billion. It was later claimed that Ripple had re-locked the 800 million XRP back into the escrow wallet, leading to speculation about the motivations behind these transactions.
Coinciding with the withdrawal of 400 million coins from escrow, XRP experienced a significant price increase. Currently, XRP is trading up 2.01% in the last 24 hours at $0.5318.
Disclaimer: The information in this article should not be considered investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research.
