Ripple locks 700M XRP, price falls 1.87% – Why?

According to a recent tweet from Whale Alert, Ripple has locked 700 million XRP in escrow. In the regular escrow program, Ripple issues 1 billion XRP each month to maintain a predictable Token supply. These Tokens are used for sales transactions to institutions, operational costs, and other purposes. However, Ripple did not release 1 billion XRP from escrow on April 1 as usual. Instead, the company moved 1 billion XRP between wallets and locked 700 million in escrow. This unexpected move has sparked much speculation about a potential change in supply.

Currently, the price of XRP has decreased by 1.87% to $2.09. Notably, Ripple frequently returns a portion of XRP to escrow. Last month, instead of issuing 1 billion XRP, Ripple locked 700 million XRP in escrow, these Tokens were created from the surplus XRP in the company’s account.

Ripple’s CEO, Mr. Brad Garlinghouse, recently stated that the company may reduce its XRP sales in the future to alleviate pressure on the Token’s price. Ripple currently holds more than 40% of the total supply of all XRP Tokens. Last month, the company withdrew its cross-appeal with the U.S. SEC after the agency agreed to the court’s request to lift the ban preventing Ripple from selling XRP to institutional customers. This ban is part of the final ruling by Judge Analisa Torres from last August.

The price of XRP is not significantly affected by Ripple’s recent actions and remains stable. The Token only decreased by 0.2% in the past 24 hours, as XRP usually does not experience strong price changes with news related to issuance.

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