#Ripple releases 1.000 million tokens #Xrp🔥🔥 from its escrow account each month as part of a program planned since 2017. Although this is a regular practice, the release of a large amount of tokens can generate interest and speculation in the market.
The main potential repercussions are:
* Increase in supply: The release of 1.000 million XRP tokens increases the circulating supply, which could, in theory, generate selling pressure and a negative impact on the price if demand does not increase at the same rate.
* Re-locking of tokens: However, the key is that Ripple does not release all of those tokens into the open market. Historically, the company has re-deposited most of the tokens (usually between 700 and 800 million) into new escrow accounts. This significantly reduces the number of tokens that actually enter the market.
* Strategic use: The remaining tokens (around 200 to 300 million) are used by Ripple for operational expenses, investments in the ecosystem, transactions with institutional partners, and to provide liquidity. This use is part of the company's strategy to promote the adoption of XRP.
* Impact on price: Over time, monthly XRP releases have had minimal and often short-lived impacts on the token's price. The price of XRP is more influenced by macroeconomic factors, general trends in the cryptocurrency market, and, in the past, the outcome of its legal battle with the SEC. Analysts often point out that the market already anticipates these monthly unlocks, so the effect on price is usually limited.
In summary, while the release of 1.000 million XRP tokens is an event that is monitored, the immediate repercussions and significant impact on the market are usually low due to Ripple's strategy of re-locking most of the tokens and the market's familiarity with this schedule.
