Ripple Labs, the distributed ledger technology (DLT) platform in charge of the XRP cryptoasset, has announced the release of one billion XRP worth $309 million from its escrow service and the firm is now set to sell the tokens to third-parties, according to reports on April 1, 2019.
1 Billion XRP Unleashed
Per sources close to the matter, 1 billion XRP tokens worth a whopping $309 million have been released from escrow by Ripple Labs, out of the total 53.5 billion (54 percent of the total XRP supply) XRP in its possession.
Ripple Labs, a San Francisco-based financial technology (fintech) firm dedicated to helping financial institutions to facilitate cost-efficient cross-border payments, reportedly releases some of its XRP holdings from its escrow service every month and it then sells a fraction of these tokens to third-party institutions via privately arranged over-the-counter (OTC) transactions.
XRP Sold Via OTC Trades
For the uninitiated, over-the-counter or off-exchange transactions are trades that are neither facilitated by cryptocurrency exchanges nor supervised by a third party.
In essence, OTC trades are conducted between just the two parties involved in the deal. OTC transactions are subject to fewer regulations, and they are typically less transparent than what is obtainable on exchanges.
Once the transaction is successfully executed, Ripple Labs returns the remaining unsold tokens to its escrow service at the end of each month. Interestingly, as stated in its Q4 2018 report, Ripple sold a total of $535.56 million worth of XRP.
“In Q4 2018, Ripple sold $88.88 million worth of XRP, programmatically. This represented 0.16 percent or 16.2 basis points of the total XRP volume traded globally in the fourth quarter. In total, the company sold $129.03 million worth of XRP in Q4. In 2018 overall, Ripple sold $535.56 million worth of XRP,” declared Ripple at the time.
XRP on the Move
Reportedly, this month’s memo includes a link to a YouTube video created by XRP shill, Jungle Inc.
In the video, the creator was seen heaping praises on the Ripple team, including CTO David Schwartz, CEO Brad Garlinghouse and founder Chris Larsen.
It’s worth noting that the Ripple team are now upping their publicity game by adding curious notes to their memo each time XRP is released from escrow.
An earlier report even included the phrase Crawl…walk…run,” which is in reference to a quote from Brad Garlinghouse.
“It’s safe to say that we have to crawl before we walk before we run. This is uncharted territory for banks and payment providers, and it’s going to take a while before you see broad adoption of cryptoassets solving this multi-trillion dollar opportunity,” Garlinghouse told Quora at the time.
At press time, the price of XRP sits at $0.31, with a market capitalization of $13.03 billion and a 24-hour trading volume of $799.60 million as seen on CoinMarketCap.