Ripple has unlocked the 23rd tranche of XRP from its escrow accounts, according to escrow tracking service, XRP Arcade. But where are these new 1 billion tokens headed?
Ripple Careful with Selling Escrow Funds
The new tranche was a predictable unlocking of coins out of Ripple’s well-established escrow program. The purpose of the escrow programme is to ensure the steady release of pre-mined XRP tokens at the start of each month.
Historical data show that for the 23 unlocking periods, Ripple has decreased its escrow by a total of 5 billion coins. This means around 227 million XRP were sold or distributed, on average, each month.
The company has several options on how to use the coins. They can be gifted to new partnerships, used for incentive programmes or they can be sold to cover operational expenses. Some of the XRP outstanding are then once again returned to escrow.
🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 1,000,000,000 #XRP (295,969,683 USD) unlocked from escrow at Ripple Escrow wallet
— Whale Alert (@whale_alert) November 1, 2019
Right now, it remains to be seen whether the new tranche of tokens will be sent to Ripple’s OTC wallet, make its way to exchanges or redistributed elsewhere.
The statistics show that the biggest fear of Ripple dumping on investors is not necessarily founded in reality, as Ripple does not typically rush to sell off its coins. Some of the XRP have been distributed for publicity and donations, while some are sent to banks for testing transactional capabilities.
Some of the funds may have been sent to settle the dispute with the R3 company,