Ripple, a blockchain payment company, has unlocked another 1 billion XRP from its escrow account as the crypto market started October on a bullish note. However, more than half of the unlocked assets have been returned to the escrow account at the time of reporting. This comes in the midst of accusations by the United States Securities and Exchange Commission (SEC) that Ripple is acting as a security in disguise, putting the burden on retail traders. Despite this, Ripple has been successful in attracting financial institutions to use its ODL and RippleNet products for cross-border payments.
Recent transactions have shown high-value transfers to an unknown address associated with the Bitstamp crypto exchange. It is worth noting that Ripple acquired a stake in Bitstamp earlier this year, making it a strategic move to improve XRP’s liquidity. In addition, a New York District Judge ruled that XRP sales to the secondary market through exchanges do not constitute investment contracts, unlike direct sales to financial institutions.
Analysing the XRP Ledger, it is revealed that Ripple received 400 million XRP units worth approximately $205 million on October 1. Another transaction of 100 million units worth $51.4 million was also observed. The final transaction from the escrow account saw Ripple receive 500 million XRP units worth approximately $257 million. Out of these, Ripple locked back around 800 million XRP to be unlocked in later months. With approximately 200 million fresh XRP at its disposal, Ripple sent about 28.5 million units, worth about $14.7 million, to the Bitstamp crypto exchange.
It is speculated that Ripple will spend the remaining XRP through the Bitstamp route to avoid further trouble with the SEC. The recent unlocking of 1 billion XRP coins coincided with a bullish outlook in the crypto market, also known as ‘Uptober’. As a result, the price of XRP has gained around 5% in the past five days, trading at around $0.523 on Monday.
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Ripple recently hosted a party in New York to increase awareness that XRP is not a security. This event aimed to attract more retail and institutional investors interested in gaining exposure to cryptocurrencies. With a fully diluted valuation of approximately $52 billion and a 24-hour trading volume of about $808 million, XRP is considered a large-cap altcoin, similar to Ethereum and Binance Coin (BNB).
In conclusion, Ripple has unlocked 1 billion XRP from its escrow account amidst allegations from the SEC. However, Ripple has been successful in attracting financial institutions to use its blockchain payment products. Recent transactions indicate a strategic move to improve XRP’s liquidity through Bitstamp. The market outlook for XRP has been positive with a bullish trend and increased awareness among retail and institutional investors.
