Unknown Ripple Wallet Has 200,000,000 XRP ($61 Million) Locked In Escrow
Popular Twitter account Whale Alert, who live tracks large crypto transactions from and to exchanges recently reported that 200,000,000 XRP which is worth about $61,498,800 is locked in escrow ar an unknown wallet.
🔒 🔒 🔒 🔒 🔒 🔒 🔒 200,000,000 #XRP (60,980,426 USD) locked in escrow at Unknown wallet
— Whale Alert (@whale_alert) March 5, 2019
An escrow is a legal concept where a financial instrument or an asset is held by a third party on behalf of two other parties that are in the process of completing a transaction. In other words, when you use an escrow, a third party acts as a guarantor. The funds or assets are held by an escrow agent. This party controls the whole process and makes sure the commitments are fulfilled. Therefore, nobody can use the money on their own without the agreement from other participants.
Escrow is gaining more and more popularity in Blockchain. A lot of companies understand the importance of guarantees for investors to prevent scams. The team may be unknown to the general public, but the Blockchain world has its authorities whose reputation is indisputable. Some companies serve as a third party in different agreements. Some startups already launch their ICOs with escrow.
Just last month, BitcoinExchangeGuide reported a story about 100,000,000 XRP coins having been transferred from Ripple Escrow wallet to Ripple OTC Distribution wallet. The Ripple network tends to experience such large transactions. This transaction has very interesting information that allows us to understand that Ripple is trying to sell some of the funds that it had on Escrow.