Ripple continues to “accelerate the XRP ecosystem” as it recently released one billion XRP from its escrow, bringing the total circulation supply to 44 billion.
In December 2017, Ripple added 55 billion XRP into an escrow wallet and announced that it would release 1 billion XRP every month to ensure certainty of XRP’s total supply entering the market.
The official blog discussed how the move would help to build XRP liquidity and a healthy and trusted market. It stated:
“Long term, the value of digital assets will be determined by their utility. XRP has emerged as the only digital asset with a clear institutional use case designed to solve a multi-trillion dollar problem – the global payment and liquidity challenges that banks, payment providers, and corporates face.”
In May 2019, Coin Metrics, a cryptocurrency market, and network data provider conducted research on XRP’s supply schedule and escrow system where it found discrepancies between what was announced and what was recorded on the XRP ledger.
It was found that the blockchain firm over-reported the amount returned by 100 million XRP and under-reported the XRP released, in their Q3 2018 and Q1 2019 reports.
According to Ripple, the unspent XRP will be sent back to a new Escrow account that will expire by the end of month 55.
“We’ll use Escrow to establish 55 contracts of 1 billion XRP each that will expire on the first day of every month from months 0 to 54. As each contract expires, the XRP will become available for Ripple’s use.”
However, according to the on-chan data, this cycle was not followed. While the unused XRP was to return to the into the first slot with no existing escrow, it was seen that they were “into the first slot (i.e., the first month) with no existing escrow.”
Another issue pointed out by Coin Metrics was that,
“Other party/parties, potentially associated with Ripple, have released 55 million XRP from an unknown escrow address not connected to the main Ripple escrow account.”
The report traced that 55 million XRP from this scheme was transferred to Bitstamp, a cryptocurrency exchange based in Luxembourg.
Surprisingly, on November 26, Whale Alert, a Twitter account providing live tracking of large transactions, reported that 49,999,996 XRP had been moved from an unknown wallet to Bitstamp.
XRP continues to swim in bearish waters. At press time, according to CoinMarketCap, XRP was standing at the third position in the market, priced at $0.21 with a market cap of $9.49.
Disclaimer: The presented information is subjected to market conditions and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.
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