Ripple unlocks $1.9 billion XRP: Lawyer explains impact on price
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Ripple, a prominent player in the crypto market, recently unlocked 1 billion XRP tokens from its escrow account. This monthly release is a routine occurrence that many in the community closely monitor. The release was made in three transactions – 500 million XRP, 200 million XRP, and 300 million XRP, totaling around $1.92 billion. This influx of XRP has coincided with a 38% increase in the price of XRP over the past week.
Some members of the community have expressed concerns about the impact of this release on the value of XRP. However, experts like lawyer Bill Morgan suggest that over time, the effect of Ripple’s sales on XRP’s price will diminish. As more XRP is released into the market, the proportion of the total trading volume represented by these sales will decrease. This ongoing process will eventually lead to Ripple controlling fewer tokens and having less influence on the market.
Despite the concerns raised by the release, XRP has seen a modest gain in the last 24 hours, hovering around $1.90. In recent weeks, XRP has experienced substantial growth, with a 267% increase over the last four weeks. This positive performance indicates a bullish trend for XRP, despite the temporary fluctuations caused by Ripple’s release of tokens.
It’s essential to remember that the information presented here is for educational purposes and does not constitute financial advice. Market participants are encouraged to consider this data in their decision-making processes but exercise caution and conduct further research before making any investment choices.
