Ripple usual returns a substantial portion of its unlocked XRP tokens after each monthly release of 1 billion tokens from its escrow system. To justify this step, pro-XRP legal expert Bill Morgan explained Why Ripple does this instead of leaving these tokens in circulation.
Why Ripple Returns Some XRP Tokens to Escrow
In a tweet Shared on his X platform (formerly Twitter), Morgan suggested that Ripple’s decision not to sell the majority of its monthly releasedsupport the price of XRP.” Morgan is likely referring to the fact that Ripple’s sale of all 1 billion tokens could significantly impact the token’s price (in a negative way).
Morgan’s tweet came in response to another X user (Alter Diego), who suggested that Ripple is not re-locking these tokens of its own accord, but because there is no demand for them. He named that the crypto company is failing to sell “even half of its monthly XRP escrow release.” gain clarity says a lot about the coin.
The fact that Ripple fails to sell even half of its monthly amount $XRP escrow release, even after you “get clarity” should tell you everything you need to know about this coin.
— Alter Diego (@elalterdiego) October 9, 2023
Another member of the XRP community noted that Ripple could sell all the tokens of the monthly issue, and if they did, people like Diego would still complain that “they were dumping.” Meanwhile, he stated that most of Ripple’s XRP sales were made to “support the rails for new ODL networks to be ready.”
Diego’s claims that there is little or no demand for XRP appear to be unfounded XRP sales have skyrocketed this year. Meanwhile, institutional investors seem to be showing more interest in the token institutional influx into the token continue to peak.
Token price falls to $0.49 | Source: XRPUSD on Tradingview.com
Ripple has lost most of its profits due to ‘second win’
In a prior tweet to the one explaining why Ripple is re-locking its held XRP tokens, Morgan noted that the token had lost most of its gains from Judge Analisa Torres’ denial of the US Securities and Exchange Commission (SEC) request for interim appeal.
XRP had climbed just as high as $0.6 per Judge Torres’ order. However, the token has since fallen by more than 2% to $0.49. However, despite the decline, many in the community are choosing to remain positive.
One particular X user (who happens to be a software developer) noted that the price of XRP was not solely dependent on the court’s decision, as the price “will go where the market takes it.” Either way, the user believes that the value of the token grows as the value of the token increases The developers of the network continue to build “Everyday incredible things.”
Featured image of American Banker, chart from Tradingview.com
