Crypto
Ripple Unlocks 1 Billion XRP, but Will It Hit Markets?
Ripple is set to unlock 1 billion XRP from its escrow wallet on September 1, sparking fears of a major sell-off. However, crypto trader Kamilah Stevenson says that not all of this XRP will enter circulation immediately.
The company has been using an escrow system since 2017, where it locks 55 billion XRP in 55 separate contracts, each holding 1 billion XRP. After the monthly unlock on September 1, Ripple typically moves around 800 million to 900 million XRP back into new escrow contracts.
The remaining 200-100 million XRP goes to Ripple's operational wallets and can be used for business needs. Historically, Ripple has returned around 700 million to 900 million XRP, leaving about 100 million to 300 million XRP outside escrow.