Ripple Escrow Unlock Raises Concerns Amidst Rumors of Manipulation

Ripple has unlocked 500 million XRP tokens from its monthly escrow, sparking concerns about potential price manipulation. The release includes 300 million tokens sent to escrow and 200 million sent to a separate wallet. Despite concerns about market impact, Ripple has emphasized that its XRP sales do not directly affect the token's price and that it adheres to regulatory guidelines in its institutional sales.

Ripple's Escrow Unlock Sparks Concerns Amidst Rumors of Price Manipulation

On May 1st, Ripple executed its monthly escrow unlock, releasing a significant number of XRP tokens into circulation. This event has raised eyebrows within the crypto community, particularly due to Ripple's history of being accused of manipulating the token's price.

500 Million XRP Tokens Unlocked

On-chain data indicates that Ripple unlocked 500 million XRP tokens from its escrow account on May 1st. While the crypto firm typically unlocks 1 billion tokens per month, it has only released half that amount this time. Despite the reduced quantity, the release of such a sizable number of tokens has ignited concerns about its potential impact on XRP's price.

Destination of Unlocked Tokens

Further analysis of the on-chain data reveals that Ripple transferred 300 million XRP out of the unlocked tokens to an escrowed account. However, the remaining 200 million XRP tokens were sent to a different wallet, raising questions about the company's intentions.

Ripple's Alleged Dumping

Ripple's token unlocks have long been a subject of scrutiny, with accusations that the company dumps tokens on the market, driving down the price. Proponents of this theory point to notable figures such as Jerry Hall, who have accused Ripple of intentionally suppressing XRP's price.

Ripple's Defense

In contrast to these allegations, Ripple's Chief Technology Officer has asserted that the company's XRP sales do not impact the token's price. Ripple has also discontinued programmatic sales, which the company claims eliminates any potential influence on crypto exchange prices.

SEC Legal Battle

In its ongoing legal battle with the Securities and Exchange Commission (SEC), Ripple has emphasized that it has taken measures to ensure its institutional sales comply with securities laws. This suggests that Ripple conducts its sales over the counter (OTC) to avoid further regulatory scrutiny.

Market Response

At the time of writing, XRP is trading at around $0.51, a slight increase of over 2% in the past 24 hours. However, it remains to be seen whether the unlocked tokens will have a significant impact on the token's long-term price trajectory.

Conclusion

Ripple's escrow unlock has reignited concerns about the company's potential influence on XRP's price. While Ripple denies allegations of manipulation, the large number of unlocked tokens and the uncertain fate of the 200 million XRP sent to a non-escrowed wallet have raised legitimate questions. The market will closely monitor the situation and observe whether Ripple's actions align with its claims of non-interference.