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Crypto: Ripple is Preparing to Release 1 Billion XRP Again! Should We Be Worried?

Mon 29 Jul 2024 ▪ 3 min read ▪ by Luc Jose A.
Getting informed Trading

Ripple continues its practice, established in 2017, of releasing a considerable amount of XRP from its escrow accounts every month. As August 1 approaches, eyes turn to the crypto company, which is about to unlock another 1 billion XRP.

Des investisseurs crypto observant le logo du XRP

A new XRP release expected

Ripple, the largest holder of XRP, will release 1 billion tokens from its ‘Ripple (24)’ and ‘Ripple (25)’ accounts, according to XRPScan data. Both accounts contain 500 million XRP each, totaling 1 billion. This process is part of the monthly releases initiated by the company since 2017, aiming to gradually manage the 55 billion XRP placed in escrow.

To date, approximately 44.02 billion XRP remain locked, and their gradual release could significantly influence the market. Ripple’s role as the largest holder of XRP and its selling strategy are crucial elements for investors to watch.

Indeed, previous unlocks have often led to partial sales. Ripple puts the majority of the released tokens back into new escrow contracts. For instance, in July, out of the 1 billion XRP unlocked, 800 million were re-escrowed, thus limiting the immediate impact on the market.

Outlook for the crypto market

Examining previous events, some volatility in XRP is observed in the days following the monthly releases. In January, for example, the sale of 226 million XRP in three days led to a drop in the crypto asset’s value.

As the next unlock is imminent, investors and analysts remain vigilant. They are particularly interested in predicting the short and medium-term repercussions of these releases. Ripple’s strategies so far show a calculated approach. They aim to stabilize the market while meeting the liquidity needs of the company’s operations.

In summary, the August 1 unlock is not just a technical process. It reveals Ripple’s strategy within a constantly evolving crypto ecosystem. The company’s decisions regarding the management of its XRP assets are watched as an indicator of the currency’s economic health and its ability to influence, or even stabilize, the market in fluctuating conditions. By anticipating Ripple’s actions, market players can better navigate the complex and dynamic cryptocurrency landscape.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.