Nearly a billion XRP was unlocked from escrow earlier today, according to whale tracking service Whale Alert.
Timing Matches Ripple’s Token Unlock Scheme
Whale Alert stated that at least 900 million XRP has been unlocked from an unknown escrow wallet. The funds were unlocked in two separate trades.
The first transaction unlocked a total of 500 million XRP (approximately $188.86 million). The second transaction unlocked a total of 400 million coins worth $151 million.
Although the coins have been unlocked from an unknown wallet, the timing matches the regular token unlocking performed by the fintech company.
Ripple has unlocked at least 1 billion XRP monthly. The initiative started in 2017 and the company has since released 55 billion units.
Costs cover daily expenses
After the massive drop in price since the start of the SEC lawsuit, Ripple usually locks down a significant portion of the coins after they are unlocked from escrow.
In most cases, the fintech company locks in 800 million of the 1 billion XRP unlocked by Ripple every month.
The remaining coins are used to meet the daily expenses of the company. In particular, this involves paying the attorneys involved in the pending SEC lawsuit.
Meanwhile, Ripple stated in its Q2 2022 financial report that it unlocked a total of 3 billion XRP, returning 2.3 billion coins to escrow.
