1 Billion XRP Coins (Worth $300 Million) Unchained From Escrow Account at Ripple
A new whale has recently performed a large transaction worth close to $308 million in XRP. The third largest cryptocurrency is used by large financial institutions and banks to perform cross-border transactions. The funds that this whale moved came from the escrow account that Ripple has.
Large XRP Movements Are Currently Taking Place
Escrow is a method that increases the security to a trade deal such as a transaction and safeguards the funds with a third party. At the moment, Ripple has 55 billion in escrow that are used to control the supply of XRP and that are used by the company to fund their expenditures until they will have a larger income from clients around the world.
On May 1st, Ripple decided to unlock 1 billion from one of its escrow account wallets. Ripple can release only 1 billion XRP per month outside from its Escrow account into the system. This allows participants that hold XRP to be sure that several billion XRP will be released to the market at once.
Ripple explained about this:
“To provide additional predictability to the XRP supply, Ripple has locked 55 billion XRP (55% of the total possible supply) into a series of escrows. These escrows are on the ledger itself and the ledger mechanics, enforced by consensus, control the release of the XRP.”
Nonetheless, these XRP may not all end in the market. Some of them could come back to some escrow accounts and be released in the future. In general, Ripple moves around 214 million XRP per month from their Escrow accounts.
According to the memo of this large transaction Ripple has supported the XRP community in South Korea.
🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 1,000,000,000 #XRP (308,891,433 USD) unlocked from escrow at Ripple Escrow wallet
— Whale Alert (@whale_alert) May 1, 2019
The memo that Ripple wrote when moving this transaction reads as follows:
“Go! Ripple! And Korean Community! 8by XRP factory).”
South Korea is a very important country in the cryptocurrency market. There are several investors and they are very active in the space. Nonetheless, the regulatory agencies of the country decided to control the space by banning Initial Coin offerings (ICOs) and regulating exchanges.