Ripple's September XRP Unlock: Fact or Fiction?
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 notes that this figure may be misleading as it doesn't necessarily mean all the tokens will enter circulation at once.
The company's escrow system was created in 2017 and locks 55 billion XRP in 55 separate contracts, with each holding 1 billion XRP. However, not all of these tokens are sold immediately after the unlock. In fact, Ripple moves around 800 million to 900 million XRP back into new escrow contracts within hours of the unlock.
On average, Ripple has historically returned around 700 million to 900 million XRP, leaving about 100 million to 300 million XRP outside escrow. This means that even if all 1 billion XRP is unlocked, not all of it will be added to circulation.