Ripple usually returns a substantial part of its unlocked XRP tokens following every monthly release of 1 billion tokens from its escrow system. Justifying this move, pro-XRP legal expert Bill Morgan explained why Ripple does this rather than leaving these tokens in circulation.
Why Ripple Returns Some XRP Tokens To Escrow
In a tweet shared on his X (formerly Twitter) platform, Morgan suggested that Rippleโs decision not to sell most of the XRP released each month is one of the steps the firm takes to โsupport XRPโs price.โ Morgan is likely referring to the fact Ripple selling all the 1 billion tokens could significantly affect (in a negative manner) the tokenโs price.
Morganโs tweet came in response to another X user (Alter Diego), who suggested that Ripple wasnโt relocking those tokens of its own volition but because there was no demand for them. He mentioned that the crypto companyโs inability to sell โeven half of its monthly XRP escrow releaseโ despite gaining clarity says a lot about the coin.ย
The fact that Ripple doesnโt manage to sell even half of its monthly $XRP escrow release even after โhaving gained clarityโ should tell you everything you need to know about this coin.
โ Alter Diego (@elalterdiego) October 9, 2023
Another member of the XRP community noted that Ripple could sell all the tokens from its monthly release, and if they did, people like Diego would still complain that โthey were dumping.โ Meanwhile, he stated that most XRP sales from Ripple were made to โsupport the rails for new ODL networks which have to be primed.โ
Diegoโs claims that there is little or no demand for XRP seem unfounded, as XRP sales have jumped this year. Meanwhile, institutional investors seem to be taking a greater interest in the token as institutional inflows into the the token continue to spike.ย
Token price falls to $0.49 | Source: XRPUSD on Tradingview.com
Ripple Has Lost Most Of Its Gains From โSecond Victoryโ
In a prior tweet to the one where he explained why Ripple relocks its escrowed XRP tokens, Morgan noted that the token had lost most of its gains from Judge Analisa Torresโ denial of the US Securities and Exchange Commission (SEC) motion for an interlocutory appeal.
XRP had climbed as high as $0.6 following Judge Torresโ order. However, the token has dropped by over 2% since then 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 XRPโs price wasnโt solely dependent on the courtโs decision as its price โwill go where the market takes it.โ Irrespective, the user believes that the tokenโs value is growing as the networkโs developers continue to build โincredible things daily.โ
Featured image from American Banker, chart from Tradingview.com
