Ripple Unlocks 1 Billion Coins, XRP Price Drops By 5%
In the early hours of today, the company’s escrow wallets released 1 billion XRP, valued at $621.78 million, across three transactions. The first transaction unlocked 500 million XRP ($310.64 million) at 02:53 UTC, followed by the second release of 400 million XRP ($248.88 million) six minutes later. The last batch of XRP for October, featuring 100 million tokens worth $62.24 million, was unlocked at exactly 03:00 UTC. These transactions were initiated by OffEscrowerOfDai, a blockchain account frequently associated with Ripple’s monthly XRP unlocks.
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Ripple is expected to re-lock most of the funds back in escrow, following the standard procedure of re-locking 80%, or 800 million XRP, after releasing 1 billion tokens on the first day of each month. This pattern was observed during the September escrow release, where Ripple re-locked 80% of the funds after unlocking 1 billion XRP. The retained 200 million XRP might have been used to advance the company’s businesses.
The recent transaction coincided with the timeline for the company’s payment of $125 million to the SEC following its violation of federal securities laws. Speculations have arisen that Ripple could sell the 200 million XRP to pay the fine.
XRP is currently trading at $0.6203, down 4.26% over the past 24 hours. However, it is up 5.26% in the past seven days and 11.09% in the monthly charts. It’s worth noting that Ripple’s recent XRP unlocks may not have directly influenced the token’s performance in the past 24 hours, as the broader crypto market has also experienced significant corrections within the same timeframe.
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