Ripple last week $3.15The automatic $ 3.28 billion XRP Token release process has led to concerns that sales pressure in the markets may occur. However, analysts and market observers note that these concerns are unfounded. The majority of the released XRPs were returned to the Escrow account soon.
Operation of Ripple Escrow System
Ripple has been using the automatic dating mechanism to stabilize the XRP supply in recent years. Despite the partial losses of the company with the US Securities and Stock Exchange Commission (SEC), it is known that some important demands are accepted by the SEC. Although there was a short -term price increase after these developments, the main agenda on the market was Ripple’s release of a large amount of XRP.
Ripple’s process was perceived as a permanent pressure on the XRP price among market participants. However, experts said that such transactions are usually automatically and in accordance with the specified calendar. Lawyer and crypto currency analyst Bill Morgan, on Twitter, Ripple CEO Brad Garlinghouse’un Escrow model of the benefits of reminiscent of the benefits reminded.
Eight years ago, Garlinghouse announced that the Escrow system provided supply predictability and reliable XRP markets. Although there are still those who still do not participate today, there are many examples that the release of XRP from Escrow has no negative impact on the price.
Price pressure and investor strategies on XRP
The Escrow system, supported by Ripple CEO years ago, aims to a predictable supply and stable market for the company. This approach is known as a method that SEC has seen positively in the past. The fact that the company holds the tokens held by the company serves as an additional guarantee on the supply side against the fluctuations that may occur.
Ripple’s abandonment when it is in a good position does not make sense by market experts. It is emphasized that similar escrow release processes have previously been automatically in accordance with the program, so the latest development did not create an unusual situation. In addition, most of the released XRPs returned to Escrow. So sudden decreases caused by the lock opening are actually meaningless for XRP Coin.
In the short term, some investors influenced the rumors that Ripple would make a serious sales and turned to panic sales. However, according to the transmitted, large investors (WHAL) continued to collect a large amount of XRP in this process. Analyst Ali Martinez shared with the public on social media sharing “Whales collected 900 million XRP in 48 hours”.
As a result, Ripple’s escrow mechanism continues to work as mostly planned. The released XRP has no permanent negative impact on the market and increases the positions of major investors. It was once again understood that the decisions taken in the crypto market should be based on concrete information and analysis, not rumors.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
