Ripple built the escrow system to manage the supply of XRP and strengthen investor confidence, not to manipulate prices.
Ripple's escrow system was created to control the release of XRP, maintain long-term stability, and support ecosystem development, as evidenced by reports and rebuttals from expert Bill Morgan.
MAIN CONTENT
The escrow system helps control XRP supply by locking 55 billion XRP, releasing in regular batches.
Effectively rebutting doubts that unlocking escrow causes XRP price drops.
Eliminating rumors that the U.S. government could seize Ripple's escrow, ensuring transparency and legal safety.
What is Ripple escrow?
According to Bill Morgan, a cryptocurrency market analyst, Ripple's escrow system is designed to prevent oversupply, helping to maintain long-term price stability for XRP. Ripple locked 55 billion XRP since 2017, releasing 1 billion XRP each month, divided into two batches of 500 million XRP, most of which are returned to escrow after being used for payments and ecosystem development.
This system is recognized by the SEC as a tool to strengthen the value of XRP, not aimed at undermining its price. This helps investors feel more secure when participating in the cryptocurrency market with XRP.
"Ripple's ESCROW is not to lower prices but to strengthen confidence and maintain a reasonable supply of XRP."
Bill Morgan, Cryptocurrency Analyst, 2025
Why do some believe that unlocking escrow negatively affects XRP's price?
Although XRP rose from $0.50 to $3.00, equivalent to a 600% increase, many critics argue that regular unlocking leads to XRP sell-offs. However, Bill Morgan explains that the amount of XRP released accounts for only a very small part of the daily trading volume, insufficient to exert downward pressure.
Historical data from November 2024 to February 2025 shows that XRP continued to grow strongly even when escrow unlockings occurred regularly. This is strong evidence that rebuts the argument that unlocking escrow negatively impacts price.
How to handle rumors about the seizure of escrow
Information suggesting that the U.S. government could seize Ripple's escrow funds to establish a national reserve has caused confusion within the community. Bill Morgan clearly stated in June 2025 that this will not happen due to the non-existent legal basis, and the measures to protect escrow are transparent and safe.
This continues to demonstrate Ripple's escrow strategy as aimed at enhancing investor trust, not influenced by unfounded negative factors.
"The seizure of Ripple's escrow has no legal basis and is not realistically possible."
Bill Morgan, Market Algorithm Analyst, June 2025
Frequently Asked Questions
1. How does Ripple's escrow system work?
Ripple locks 55 billion XRP in escrow and releases 1 billion XRP monthly to control supply, support stability, and develop the ecosystem, not to manipulate prices.
2. Does unlocking escrow decrease XRP's price?
Market data shows that the amount of XRP released from escrow is very small compared to total daily transactions, not causing downward pressure but rather aligning with growth trends.
3. Is there a risk of the government seizing Ripple's escrow funds?
According to expert Bill Morgan, there is no legal or practical basis for the U.S. government to seize Ripple's escrow, ensuring the safety of investors.
4. Is the strong price increase of XRP related to escrow?
The strong price increase of XRP has occurred in months with escrow unlockings, proving that escrow does not hinder but rather supports the development of the XRP market.
5. Who confirms the transparency of Ripple's escrow system?
The SEC and market experts like Bill Morgan recognize escrow as a tool for transparent supply management, reinforcing investor confidence.
Source: https://tintucbitcoin.com/xrp-ripple-bill-morgan-bac-bo-thao-tung/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
