Ripple Plans July Sell-Off with 1 Billion XRP Tokens Unlocked

2024-06-27

Ripple, the company behind XRP Ledger (XRP) development, will unlock 1 billion XRP tokens worth $470 million on July 1 as part of its monthly sell-offs, potentially impacting XRP prices. Since 2017, Ripple has consistently unlocked 1 billion tokens each month through escrows. According to XRPScan, Ripple (24) and Ripple (25) wallets, managing escrows since May 2024, will hold these tokens until January 2025. On July 1, Ripple (24) will release 500 million XRP in two escrows (100 million and 400 million), and Ripple (25) will release a single escrow of 500 million tokens.

Key Takeaways

Monthly Token Release Strategy: Ripple’s upcoming July 1 release of XRP tokens is part of its regular strategy, potentially influencing market dynamics.
Escrow Management and Allocation: Tokens held in Ripple (24) and Ripple (25) accounts until early 2025 will be partially released, impacting XRP’s supply.
Market Impact: Ripple’s consistent token sales historically correlate with XRP price volatility, emphasizing the need to monitor these activities closely for their impact on market stability and investor sentiment.

Escrow Unlocking and Token Reservation

Source: Finbold

On June 1, the escrow system unlocked 1 billion XRP from ‘Ripple (24)’ and ‘Ripple (25)’ accounts. Ripple reserved 200 million tokens for a sell-off and re-locked the remaining tokens in escrow until September 2027. Additionally, the company added 200 million extra XRP, totaling 400 million for its largest monthly dump in history.

‘Ripple (24)’ transferred 200 million XRP to ‘Ripple (1)’, the treasury account. On June 7, Ripple sold 150 million XRP of the reserved amount. On June 20, Ripple completed its month’s sell-off by dumping the remaining 250 million XRP.

Effects of Ripple’s Token Sales on XRP

Source: Bitrue

Currently, XRP is trading at $0.4707, with a current market cap of $26,319,603,779. The 24-hour trading volume is $44,639,419. XRP has experienced a -0.63% change in the last 24 hours and a -4.36% change over the past 7 days, with a circulating supply of 55,618,185,850.

Ripple’s token sales significantly impact XRP’s price due to the supply pressure on the market. Historically, XRP often experiences local crashes when Ripple sells its tokens. In 2024, only 5 out of 14 sell-off days had positive price action: February 5, 11, April 14, May 13, and 20. The remaining 9 days saw local crashes, highlighting the need to monitor Ripple’s activities closely. Moreover, XRP showed a negative monthly performance in 4 of the first 6 months of 2024. This month has also seen a negative price action since Ripple unlocked 1 billion XRP on June 1.

Conclusion

Ripple’s scheduled release of 1 billion XRP tokens on July 1 marks another significant event in its monthly sell-off strategy, potentially influencing XRP prices. Managed through escrow accounts, specifically Ripple (24) and Ripple (25) since May 2024, these tokens are pivotal until January 2025. The upcoming release includes 500 million XRP from each account, affecting market dynamics. Ripple’s consistent token sales historically correlate with XRP price volatility, often resulting in local market downturns. Monitoring these activities closely remains crucial for stakeholders, given their impact on XRP’s market performance and investor sentiment.

FAQ

What is Ripple’s role in the cryptocurrency market?

Ripple is a company known for developing the XRP Ledger and facilitating cross-border payment solutions using blockchain technology.

How does Ripple’s token release affect XRP prices?

Ripple’s monthly release of XRP tokens can impact the supply and demand dynamics of XRP, potentially influencing its market price.

Why does Ripple lock XRP tokens in escrow?

Ripple locks XRP tokens in escrow to provide transparency and predictability in token release schedules, aimed at managing XRP’s supply over time.

Ripple XRP

Disclaimer: The content of this article does not constitute financial or investment advice.

Join Bitrue for exclusive rewards

Hamster Kombat offers a unique and exciting opportunity for players to earn substantial rewards through its innovative profit-per-hour system. By maximizing your hourly profits, investing in high-value boosts, and engaging with the community, you can secure a significant share of the token airdrop and enhance your gaming experience. As the game continues to gain traction in the crypto space, it presents a compelling option for those looking to combine their love for gaming with the potential for financial gain. Dive into Hamster Kombat today and start maximizing your earnings.

2024-06-20Read

US Election Meme Coins Plummet Ahead of Debates: A Buying Opportunity?

US presidential election-themed meme coins like BODEN, MAGA, and TREMP have recently plummeted by 24%, 43%, and 36% respectively. Despite this downturn, there's potential for speculative gains, especially with the upcoming June 27th debates. These coins are heavily influenced by political events, such as Trump's impact on MAGA's price movements. Experts suggest cautious optimism; Ben Kurland sees opportunities but warns of political risks, while Darren Franceschini highlights concerns about market manipulation by large investors. Looking ahead, while these coins may show strength in the short term, their long-term outlook is uncertain due to the influx of new meme coins. Investors are advised to stay informed and tread carefully in this volatile market.

2024-06-19Read

https://static.bitrue.com/img/blog/support/default-cover.jpg

The Sustainability of Crypto Clicker Games: A Closer Look

The explosive growth of crypto idle games represents a fascinating chapter in the ongoing story of cryptocurrency adoption. These games have undoubtedly succeeded in bringing blockchain tech and digital assets to a wider audience, thanks to the massive user bases of platforms like Telegram. However, their long-term impact and sustainability remain uncertain. While the simplicity of these games has driven their initial success, it may also be their greatest weakness. Users drawn to the allure of easy crypto earnings should approach this space with caution, remembering the age-old adage: if it seems too good to be true, it probably is.