The lock opening took place today in Ripple, which achieved an important victory in the SEC case.
At this point, Ripple, which unlocks 1 billion XRP on the first day of every month, unlocked 1 billion XRP tokens in the escrow system programmed in the XRP Ledger.
On Wednesday, November 1, XRP unlocking was carried out in 3 different transactions, and 100 million XRP worth $ 59.98 million, 400 million XRP worth $ 239.92 million and 500 million XRP worth $ 299.9 million were put into circulation.
This unlocking is a routine process that occurs every month to provide additional predictability to the XRP supply and will occur regularly every month until February 2027.
After this unlocking, there was a temporary decrease in the price of XRP, but XRP recovered rapidly and continues to trade at $ 0.60.
Why Did XRP Create This Escrow System?
Ripple set the total supply of XRP at 100 billion XRP. $20 billion of the total supply of 100 billion XRP was distributed to Ripple's developers and core team.
Ripple said that the remaining supply of 80 million XRP will be released gradually.
At this point, Ripple states that it uses the escrow account system to provide transparency and certainty to the XRP market. Ripple also locks up a large portion of its XRP holdings, ensuring that it cannot flood the market with oversupply and manipulate the price.
In addition, Ripple also uses the large amount of XRP in escrow accounts to invest in and support projects in the Ripple ecosystem.
Ripple also notes that the monthly release of 1 billion XRP tokens from escrow does not mean that all XRP will enter the market.
