XRP price dips to $0.4970, sparking debates on Ripple escrow management strategy.
XRP’s price has again fallen below the $0.5 mark. This effectively means XRP has lost the gains it accumulated following another pivotal ruling from the court case between Ripple and the US regulator.
Amid XRP’s current market permanence, the crypto community debates XRP’s appeal from the perspective of Ripple’s management of its monthly escrow XRP release.
In a recent tweet, XRP user Alter Diego raised concerns about Ripple’s supposed inability to sell a significant portion of its monthly XRP escrow allocation, even after gaining regulatory clarity.
Ripple Takes Steps to Support XRP’s Price
In response to Diego’s claim, members of the XRP community offered counter-views about Ripple’s monthly XRP escrow release. The renowned pro-XRP lawyer Bill Morgan expressed his views, shedding light on Ripple’s strategy to support the price of XRP.
Morgan remarked: “The fact Ripple decides not to sell most of the XRP released each month from escrow tells me what I already know from the SEC’s evidence in the Ripple case. Ripple takes steps to support XRP’s price.”
The fact Ripple decides not to sell most of the XRP released each month from escrow tells me what I already know from the SEC’s evidence in the Ripple case. Ripple takes steps to support XRP’s price. https://t.co/QOTUZXnBhY
— bill morgan (@Belisarius2020) October 9, 2023
Emphatically, Morgan’s remark suggests that Ripple’s decision not to flood the market with its escrowed XRP tokens is a deliberate move aimed at maintaining XRP’s value.
Besides, the lawyer believes the strategy aligns with the firm’s efforts to navigate the ongoing legal battle with the US regulator while maintaining investor confidence in XRP.
Meanwhile, another X user, Julian Williams, argued that if Ripple were to sell all of its monthly XRP escrow allocations, critics would accuse the company of “dumping” XRP onto the market.
Moreover, Williams highlighted a broader strategic purpose behind Ripple’s minimal XRP sales. He noted that the XRP sales are to support the infrastructure necessary for Ripple’s On-Demand Liquidity (ODL) service.
Ripple’s XRP Holding
The Crypto Basic recently disclosed Ripple’s XRP portfolio based on the company’s second-quarter report.
As of March 31, 2023, Ripple’s total spendable XRP holdings amounted to 5,506,585,918 (5.50 billion). During the subsequent quarter, Ripple reported a slight increase in their XRP holdings: 5,551,119,094 (5.55 billion).
Regarding the XRP subject to on-ledger escrow, the figures were 42,800,000,013 (42.8 billion) in March and 41,900,000,005 (41.9 billion) as of June. Notably, the XRP in this escrow wallet will be released over the next few years.
