San Francisco-based blockchain company Ripple unlocked 1 billion XRP from escrow accounts on May 1. The XRP unlocked, equivalent to $469.6 million, is part of Ripple’s monthly token distribution strategy that began in December 2017.
The company issues XRP from escrow in a controlled manner to provide supply predictability and ensure XRP stability.
Today’s Unlock is the latest in a series of monthly releases designed to support the growing ecosystem and meet the growing demand for cryptocurrencies.
Any unspent XRP is typically returned to escrow, effectively extending the release schedule. Critics argue that Ripple’s control over the majority of XRP tokens held in custody raises concerns about centralization.
This level of control by a single entity, they argue, goes against the decentralized principles of many cryptocurrencies, including bitcoin. Some investors worry that Ripple’s ability to pump large amounts of XRP to the market each month could be used to manipulate the token’s price.
Despite these concerns, Ripple has always claimed that its custody strategy is aimed at maintaining the stability of the coin. Unlocking 1 billion XRP following Ripple’s strong Q1 2023 performance.
The company reported a surge in XRP sales, bringing total revenue to $361.06 million, a sharp increase from $226.31 million in the fourth quarter of 2022.
On-chain activity on the XRP Ledger is also considerable, with both centralized and decentralized exchanges seeing significant growth in transaction volume.
At press time, XRP is trading at $0.46 on major spot exchanges.
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- Ripple’s Q1 2023 XRP Net Revenue Soars to $361 Million
According to USA Today