Ripple Locks Up 700 Million XRP in Escrow

As per a latest tweet from Whale Alert, Ripple has locked 700 million XRP tokens in escrow.

According to a latest tweet from Whale Alert, Ripple has locked 700 million XRP tokens in escrow.

What Happened

As part of its regular escrow program, Ripple releases 1 billion XRP each month to keep the token supply predictable. The released tokens are used for institutional sales, operational costs, and other purposes.

However, instead of releasing its usual 1 billion XRP from escrow on April 1, Ripple moved 1 billion XRP between wallets, locking 700 million back in escrow. This surprise move caused speculations about possible changes in supply.

Since, XRP’s price has dropped 1.87% to $2.09.

This hints that Ripple might be changing its automated release system, sparking speculation about whether the company is adjusting its supply strategy or gearing up for a significant market move.

On April 2, Ripple conducted several large XRP transactions, moving hundreds of millions of tokens worth billions. The transfers included 300 million XRP ($629 million) to “rBg…91m,” 200 million XRP ($420 million) to “rKD…2op,” 170 million XRP ($357 million) to “rKD…2op,” and 330 million XRP ($693 million) to “rDd…eCK.”

After these moves, Ripple relocked 700 million XRP into escrow—370 million from “rKD…2op” and 330 million from “rDd…eCK.” The 300 million XRP in the “rBg…91m” wallet likely remains for operational use or future strategic purposes.

Notably, instead of returning a portion of the released tokens to escrow, as it usually does, Ripple appears to have used the surplus XRP to top up the "rDd...eCK" wallet and then redirected those funds back into escrow. This suggests a deliberate strategy to manage its XRP holdings.

Last month, instead of releasing the usual one billion batches of XRP tokens, Ripple locked 700 million batches back into escrow. These tokens were created from surplus XRP in the company’s accounts.

Further Reading: U.S. SEC Agrees to Request Dropping Ban on Ripple Selling XRP

What’s More

Recently, Ripple CEO Brad Garlinghouse said that the company might cut back on selling XRP in the future, which could help ease the pressure on the token’s price.

The company still holds over 40% of the total supply of all XRP tokens.

Last month, the agency agreed to request the court drop the ban that had stopped Ripple from selling XRP to institutional clients. This injunction was part of Judge Analisa Torres’s final ruling from last August. As part of her August 2022 verdict in the SEC lawsuit, which saw both parties win some claims, the judge imposed an injunction on Ripple’s planned sale of XRP tokens. The ruling saw the regulator win its case that Ripple’s sale of XRP was an unregistered securities offering, while the company won the claim that XRP sold to individuals on cryptocurrency exchanges wasn’t a security.