On-chain data recently showed that carried out its monthly escrow unlock for May. As expected, this has raised concerns about how it could affect the XRP price, especially since Ripple has been accused of .
Ripple Unlocks 500 Million XRP Tokens
Onchain data 500 million XRP tokens were unlocked from Ripple’s escrow on May 1. The crypto firm is known to unlock , although it looks to have only unlocked half this time around. The magnitude of these tokens always raises concerns, considering the negative impact they could have on if dumped on the market.
Further analysis of the on-chain data shows that sent 300 million XRP out of the unlocked tokens to an escrowed account (). Meanwhile, the crypto firm sent the remaining 200 million XRP tokens to another wallet (). Considering that the 200 million XRP tokens weren’t sent to escrow, Ripple may have plans to sell them at some point, although it has yet to do so.
It is also worth mentioning that Ripple another 500 million XRP tokens from an unknown wallet (ymFZmKxEsF). However, these funds were immediately to an escrow account. As such, the can heave a sigh of relief since most of the XRP tokens Ripple received in the last 24 hours have been sent back to escrow.
Talks About Ripple Dumping On The Market Resurface
Following the latest token unlock, the crypto community has talks about Ripple’s alleged dumping on XRP holders. The question of whether or not Ripple’s XRP sales influence the token’s price has been a long-standing discussion, with notable figures like pro-XRP crypto YouTuber Jerry Hall even Ripple of intentionally suppressing the altcoin’s price with its sales.
On the other hand, people like Ripple’s Chief Technology Officer (CTO) have that the crypto firm’s XRP sales do not impact the crypto token’s price. Moreover, Ripple already programmatic sales, which means that its cannot affect prices on crypto exchanges.
Ripple also noted in its in its ongoing legal battle against the Securities and Exchange Commission (SEC) that it had taken measures to ensure its institutional sales did not violate securities laws. This suggests that Ripple conducts its sales over the counter (OTC) to avoid further scrutiny from the Commission.
At the time of writing, the token is trading at around $0.5, up over 2% in the last 24 hours according to from CoinMarketCap.
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