Ripple Labs Inc. has locked 700 million XRP tokens, valued at approximately $1.54 billion, into escrow accounts as part of its monthly token management strategy. This move aims to maintain a predictable token supply and minimize market fluctuations.
*Key Details:*
- *Amount Locked*: 700 million XRP tokens
- *Value*: Approximately $1.54 billion
- *Purpose*: To manage circulating supply and reduce market volatility
- *Frequency*: This is a monthly activity, with Ripple releasing 1 billion XRP and re-locking a portion to maintain supply control
*Market Impact:*
- *XRP Price*: Remained stable with negligible volatility
- *Broader Market*: No significant impact on other major cryptocurrencies like ETH or BTC
*Ripple's Strategy:*
- *Escrow Program*: Designed to regulate XRP supply and prevent excessive market fluctuations
- *Supply Control*: Ripple releases 1 billion XRP monthly for institutional sales, operational expenses, and liquidity support, then re-locks a portion to maintain stability
- *Future Plans*: Ripple may reduce XRP sales, potentially alleviating downward price pressure .
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