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Ripple’s Sudden $217M $XRP Unlock: All You Need to Know

by BSC News

February 26, 2024

chain

This move has puzzled the XRP community as it deviates from Ripple's usual schedule, prompting speculation and discussions on social media.

San Francisco-based blockchain company Ripple has executed the unlocking of 400 million XRP tokens, equivalent to approximately $217 million, from its escrow account, according to Whale Alert. 

This move has stirred curiosity within the XRP community, as it deviates from Ripple's typical schedule, leading to varied speculations and discussions.

Unusual Memo Raises Questions

Adding an intriguing element to the transaction is an unusual memo that accompanied it. The memo raises questions about the execution of February's escrow and includes peculiar shout-outs: "February escrow was not executed? Hmm. !!TRWBT!! Welcome back Hodor!! John Deaton!!" 

Source: Bithomb

The XRP community took to social media platforms to express reactions and opinions on the unexpected unlock. 

Comments ranged from speculation about the event being a week early to theories suggesting it could be three weeks late. 

Ripple's Monthly Token Release Strategy

Ripple typically releases a predetermined number of XRP tokens from its escrow account on the first day of each month. This systematic approach aims to provide clarity and predictability to the XRP supply, preventing sudden surges in the market. The monthly release strategy is designed to curb market manipulation risks and maintain stability in XRP's price.

Further, the controlled release of tokens also serves the purpose of generating funds for Ripple's operations, projects, and investments in the broader blockchain space. This financial support enables Ripple to continue its work within the industry.

XRP is trading at $0.5497 as of writing, up 1.12% the last 24 hours.

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