Traditionally every month, on the 1st of every month, blockchain behemoth Ripple lets a staggering 1 billion XRP tokens out of escrow.
The release was made in two transfers, 500 million coins each. It is executed on the first day of each month, has been for several years already.
At the current XRP price of $ 1.05, up to 18% in the last 24 hours.
The goal is to support the liquidity of the token on crypto exchanges, send some to Ripple’s partners and customers and use XRP for covering the company’s current operational expenses.
However, the majority of the released coins, around 80% – 90%, are usually locked back later the same day. Unlike fears of some in the community in the past, these programmed XRP withdrawals from escrow do not impact the XRP price.
These regular XRP releases have proven to have no impact on the coin’s price. The SEC lawsuit affected this aspect more as the coin failed to recover to its previous highs. However, yesterday’s good news also caused XRP to record 18% intraday, 10% weekly gains.