Ripple executives clear the air around the XRP blocked in the escrow account

  • Ripple executives respond about the massive XRP tokens kept in the Ripple escrow accounts and their circulation.
  • As per Whale Alerts, more than 375 million XRP tokens have been on the move over the last 48 hours.

One of the XRP enthusiasts initiated a discussion on whether the XRPs locked up in Ripple’s accounts have been in circulation or not. A Twitter handle operating under the name Xrpman initiated the discussion: “Why is the escrowed XRP not included in the circulating supply? If @Ripple and $XRP are truly 2 entities. Couldn’t anyone escrow their XRP to get it “removed” from circulation?”

Xrpman tagged some of the top Ripple executives including Ripple CEO Brad Garlinghouse, CTO David Schwartz, and others. Besides, he also invited the self-titled CEO of XRP tiffany Hayden.

https://www.crypto-news-flash.com/wp-admin/post.php?post=198604&action=edit&lang=en&admin_bar=1

Ripple’s Director of Engineering Nik Bougalis was among the first to answer the question. He noted that although he didn’t have a clear answer to the inclusion of XRP escrows in the overall token offering, he was leaning towards inclusion. Besides, the engineer showed willingness for resolving the issue and making XRP’s offer clear.

Differing opinions of Ripple executives

Ripple’s self-titled CEO Tiffany Hayden said that XRPs from the escrow accounts could be sold. Besides, anyone can lock their tokens in a similar way. But former Ripple developer Matt Hamilton said that technically there’s no difference between blocked XRPs and the BTC sent to the Lightning Network. He further argued that if we exclude all the BTC blocked in Lightning transactions the BTC supply will tend to go to zero.

Ripple CTO David Schwartz seemed to differ from Hamilton’s observation. He said:

There’s a practical difference though. If I want to pay you a bitcoin, I can use the bitcoins in lightning to do it. if I want to pay you some XRP, I can’t use XRP in escrow to do it. That, at least IMO, could justify calling one part of circulating supply and one not.

The topic seems to be quite subjective for now, and there’s no one clear answer to it.

375M XRPs on the move

In the recent turns of events, there’s a massive number of XRP tokens that are currently on the move across exchanges and unknown wallets. Whale tracking service Whale Alert observed that in the last 48 hours, there have been more than 375 million XRP coins on the move.

As per Whale Alert, the first transaction occurred on Tuesday, August 9, that involved the transfer of 75 million XRP tokens worth $28 million moved from leading crypto exchange FTX to an unknown address.

There have multiple such transactions reported thereafter. Since the beginning of the month, Ripple has been involved in large XRP transfers. These transactions have been linked to the surge in the on-demand liquidity (ODL) of XRP tokens.

About Author

Bhushan is a FinTech enthusiast and holds a good flair for understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his free time, he reads thriller fictions novels and sometimes explores his culinary skills.

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