Ripple’s $3.28 Billion XRP Escrow Release Sparks Selloff Fears — But the Panic Was Misplaced

#XRP Market Shaken by Escrow Unlock

Last week, Ripple triggered its scheduled release of $3.28 billion worth of XRP from its long-standing escrow system, a move that instantly fueled speculation of an impending large-scale selloff. While social media buzz suggested a bearish storm was brewing, the fears were largely unfounded.

Within hours of the news, XRP whales — large-scale token holders — were quietly consolidating their positions, capitalizing on market jitters. The tokens, as Ripple later confirmed, were returned to escrow, maintaining the planned supply schedule.

Why the Selloff Panic Didn’t Add Up

Despite the initial drop in sentiment, legal expert and crypto analyst Bill Morgan explained why the event posed no long-term threat to XRP’s market value.

“People assumed Ripple was unlocking the escrow to sell XRP on the open market,” Morgan noted. “But these releases are automated and have been part of Ripple’s market structure for years.”

The escrow mechanism, introduced more than seven years ago under the direction of Ripple CEO Brad Garlinghouse, was designed to stabilize supply and avoid sharp market shocks. The SEC itself has acknowledged the system’s role in promoting market stability.

Given Ripple’s strong position — even after losing its cross-appeal in its high-profile #SEC case but securing key legal concessions — abandoning such a strategic safeguard now would make little sense.