Will the unlocking of 1 billion XRP by Ripple trigger a sell-off on June 1

On June 1, Ripple Labs plans to unlock 1 billion XRP tokens from its escrow accounts worth more than $2.3 billion at current market prices. This event is part of Ripple's monthly issuance cycle (which began in 2017) and is aimed at controlled distribution of XRP.

Ripple's escrow system was designed to ensure predictability and transparency of XRP supplies through a monthly issuance of 1 billion XRP. However, Ripple usually returns a large portion of the tokens back to the escrow system shortly after issuance, often from 60 to 70%. The remaining tokens are used to cover operational expenses, invest in the ecosystem, and ensure liquidity.

Recently, there have been some changes: Ripple has adjusted its approach by pre-locking a portion of XRP before the scheduled monthly release. For example, this month Ripple pre-locked 700 million XRP before the release, and such a strategy has been observed over the last two months.