Whale Alert platform, which tracks major movements in blockchains and shares them publicly, reported that 400 million XRP tokens were withdrawn from an escrow wallet. Additionally, the identity of the wallet that released Ripple-linked coins valued at $213.9 million was not disclosed.
400 Million XRP Tokens Moved by Ripple?
The non-disclosure of the wallet’s identity makes this transaction stand out from typical XRP escrow wallet transactions usually conducted by Ripple Labs. A similar scenario was observed last month when 500 million XRP tokens, then valued at approximately $314.87 million, were withdrawn from an undisclosed escrow wallet.
Despite much speculation about the identity of the wallet, it is important to recall that Ripple had previously locked a total of 55 billion coins in an escrow wallet and has since been releasing about 1 billion coins monthly in multiple transactions as part of a regular strategy.
This strategy by Ripple aims to regulate the market dynamics of the altcoin. Such transactions typically increase the supply in the market and consequently can impact the price of the underlying coin, as seen with XRP, where prices can be instantly suppressed. XRP-supporting lawyer Bill Morgan criticized this approach, pointing out a lack of innovation.
Recently, 800 Million XRP Tokens Were Withdrawn from Escrow
A short while ago, it was confirmed that Ripple had withdrawn another 800 million XRP tokens from escrow.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. This action led to speculation about Ripple’s motivations for these transactions and occurred simultaneously with several other significant coin transfers.
Notably, the most recent withdrawal of 400 million coins from escrow coincided with a significant price increase in XRP. Currently, XRP is trading up 2.01% in the last 24 hours at $0.5318.
