Why Does Ripple Return Unlocked Tokens To Escrow? Pro-XRP Lawyer Provides Answers
10 October 2023 - 10:45PM
NEWSBTC
Ripple usually returns a substantial part of its unlocked XRP
tokens following every monthly release of 1 billion tokens from its
escrow system. Justifying this move, pro-XRP legal expert Bill
Morgan explained why Ripple does this rather than leaving these
tokens in circulation. Why Ripple Returns Some XRP Tokens To Escrow
In a tweet shared on his X (formerly Twitter) platform, Morgan
suggested that Ripple’s decision not to sell most of the XRP
released each month is one of the steps the firm takes to “support
XRP’s price.” Morgan is likely referring to the fact Ripple selling
all the 1 billion tokens could significantly affect (in a negative
manner) the token’s price. Related Reading: These Bullish Factors
Prove XRP Price Rally Is Not Over Yet Morgan’s tweet came in
response to another X user (Alter Diego), who suggested that Ripple
wasn’t relocking those tokens of its own volition but because there
was no demand for them. He mentioned that the crypto company’s
inability to sell “even half of its monthly XRP escrow release”
despite gaining clarity says a lot about the coin. The fact
that Ripple doesn’t manage to sell even half of its monthly $XRP
escrow release even after “having gained clarity” should tell you
everything you need to know about this coin. — Alter Diego
(@elalterdiego) October 9, 2023 Another member of the XRP community
noted that Ripple could sell all the tokens from its monthly
release, and if they did, people like Diego would still complain
that “they were dumping.” Meanwhile, he stated that most XRP sales
from Ripple were made to “support the rails for new ODL networks
which have to be primed.” Diego’s claims that there is little or no
demand for XRP seem unfounded, as XRP sales have jumped this year.
Meanwhile, institutional investors seem to be taking a greater
interest in the token as institutional inflows into the the token
continue to spike. Token price falls to $0.49 | Source:
XRPUSD on Tradingview.com Ripple Has Lost Most Of Its Gains From
‘Second Victory’ In a prior tweet to the one where he explained why
Ripple relocks its escrowed XRP tokens, Morgan noted that the token
had lost most of its gains from Judge Analisa Torres’ denial of the
US Securities and Exchange Commission (SEC) motion for an
interlocutory appeal. Related Reading: 39-Month Cycle Says XRP
Price Is Poised For Breakout To $1,000, Here’s When XRP had climbed
as high as $0.6 following Judge Torres’ order. However, the token
has dropped by over 2% since then to $0.49. However, despite the
decline, many in the community are choosing to remain positive. One
particular X user (who happens to be a software developer) noted
that XRP’s price wasn’t solely dependent on the court’s decision as
its price “will go where the market takes it.” Irrespective, the
user believes that the token’s value is growing as the network’s
developers continue to build “incredible things daily.” Featured
image from American Banker, chart from Tradingview.com
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