- Ripple has again released one billion XRP from escrow.
- According to Whale Alert, the transaction was completed yesterday at 00:35 UTC Wednesday. So far the price of XRP has remained stable.
At the end of 2017, Ripple for the first time transferred and frozen more than 55 billion XRP to an escrow account. The company is committed to release 1 billion XRP on the first day of each month to bring them to market. However, this routine is suspected to have a negative impact on the price of XRP.
1,000,000,000 XRP released from escrow account
Whale Alert yesterday reported the movement of one billion XRP from the XRP trust wallet. Institutional investors and cryptocurrency exchanges as well as other companies with large capital can now buy the released XRP. The unsold XRPs will flow back into the escrow account at the end of the month.
XRP is one of the worst performing cryptocurrencies of 2019, so the community is all the more looking for possible factors that could negatively influence the growth of XRP. The community of Ripple sees the monthly sale as an obstacle factor that could negatively influence the price of XRP.
This criticism is based on the fact that Ripple increases the selling pressure on XRP through the ongoing sales. As a result, XRP holders could start selling their stock and thus push the price down. Although Ripple has often argued in the past that they have no influence on the price of XRP, and that the native cryptocurrency exists independently decentralized from the company, it is not possible to make a statement about the price of XRP.
However, there are parties, such as Grayscale Investments, who in a recent report point out that Ripple is more centralized than Bitcoin and Ethereum. In the last quarterly report, Ripple made direct reference to the allegations made and made it clear that Ripple does not in any way manipulate or control the price of XRP.
In the third quarter of last year, Ripple sold XRP worth $66.2 million. This represents a decrease of more than 70% compared to the previous quarter when XRP valued at $251.5 million was sold. The fourth quarter financial report has not yet been released, but will follow shortly.
XRP price stable so far – when will the trend reverse?
Although Ripple releases one billion XRP from escrow every month, there are other factors that could affect the price of XRP. Last year, Ripple recorded the strongest growth to date in the company’s still young history. Ripple has hired its 500th employee and is now present in many countries around the world.
Ripple also plans to open up further payment corridors to Brazil. The XRP volume on the Mexican exchange Bitso, with which Ripple has been working since the beginning of last year, has risen to a new all-time high. Bitso uses Ripple’s payment solution On-Demand Liquidity, formerly known as xRapid.
MoneyGram, the money transfer giant, describes that more than 10% of daily transactions are now carried out between Mexico and the United States. MoneyGram sees the advantages of using ODL in the fast speed, low cost and immediate provision of liquidity without having to use additional pre-financing accounts.
— Liquidity Index Bot (@LiquidityB) December 31, 2019
The price of XRP has been trending sideways (- 1.1%) for the past 24 hours and is currently trading at USD 0.1940. It remains to be seen whether the “January effect” can drive the price.