The theory of XRP escrow dumping is once again under scrutiny, with critics accusing Ripple of intentionally depressing the token's price. In response, XRP lawyer Bill Morgan claims that Ripple is committed to supporting the XRP ecosystem through its escrow management strategy.
To bolster his statement, Morgan asserted that the SEC has recognized Ripple's true intent. His post on X said: 'Even the SEC acknowledged that the escrow was aimed at propping up the price of XRP, not deflating it.' Morgan noted that the SEC had considered the escrow mechanism as one of the factors that would lead investors to expect profits from Ripple's actions. He added that this was just one of the many arguments he had previously cited to discredit the escrow dumping theory.
It is worth noting that this negative reaction comes after Ripple's escrow release in July. Ripple unlocked one billion tokens in two tranches of 500 million each.
Ripple still faces criticism for its XRP escrow mechanism, despite the token's price skyrocketing from the initial $0.5 to over $3. In light of this positive market sentiment, critics argue that Ripple's monthly escrow releases are intentionally designed to provoke price drops.
Earlier, in February 2025, Morgan addressed this misconception, highlighting that monthly XRP emissions represent a small fraction of the daily trading volume. Furthermore, as the total supply of XRP grows, the proportion of tokens in escrow continues to decrease. He added that this measure has no negative effect on the token's price.
The lawyer's original argument was that the theory of XRP escrow dumping is fundamentally disconnected from the actual performance of the token. He pointed out that despite the continuous releases of XRP from escrow, the asset's price has increased, suggesting that other factors could be responsible for any future price drop. His post on X said:
"What more can be said about the discredited theory of escrow dumping that hasn't already been said? If it needed a final blow to send it to its final resting place, it was the massive price increase of XRP from $0.50 to over $3.00, despite new XRP releases by Ripple from the escrow in November, December 2024, and January 2025."
In June, Morgan also debunked rumors about the possible seizure of the national reserve's escrow by the U.S. government. He strongly dismissed speculation about the government's plans, stating: 'No, it will not.'
