Ripple, a blockchain company in San Francisco, has unlocked 400 million XRP tokens, valued at about $217 million, from its escrow account, as reported by Whale Alert. This unexpected move has stirred curiosity within the community.
Adding to the intrigue is a strange memo attached to the transaction, which questions the execution of February’s escrow and includes unusual shout-outs like “Welcome back Hodor!!” and “John Deaton!!”
XRP Community Puzzled by Unexpected Token Unlock
The recent unlocking of XRP tokens has left the XRP community bewildered, as it deviates from Ripple’s typical schedule. Many community members noted that the timing of the unlock does not align with Ripple’s usual pattern.
Following the news, the X social media network was flooded with reactions from community members. Speculation ranged from theories suggesting the unlock was a week early to others proposing it could be three weeks late.
This unexpected occurrence follows a transaction in February where only half a billion XRP tokens were locked in escrow, a stark contrast to the amount unlocked in January.
Ripple’s Monthly Token Unlocking Practice
Ripple regularly releases a set number of XRP tokens from its escrow account on the first day of each month. This helps make the supply of XRP clear and predictable, ensuring that only a certain amount of tokens enter the market at once. This reduces the risk of sudden increases in supply.
The goal of this monthly release is to prevent market manipulation and keep the price of XRP stable. By controlling how many tokens are released, Ripple aims to create a safer environment for investors.
Additionally, the money raised from selling these tokens is used to fund Ripple’s operations, projects, and investments in the wider blockchain world. This helps support Ripple’s ongoing work in the industry.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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