A recent transfer from an escrow account that is held by the Ripple founders has caused a bit of scene in the cryptocurrency community. The billion XRP has been unlocked from a wallet that many thinks belong to the founders, and while this has caused a bit of scene, regular followers of the company find it to be non-news.
Transaction Type: EscrowFinish
Amount: 1,000,000,000 XRP
— XRPL Monitor (@XRPL_Monitor) July 1, 2019
Coin Metrics report has been fired up
There has been a lot of blowback from the crypto community regarding Ripple’s escrow movements since Coin Metrics released a statement saying that the company under-reported the amount of XRP released. The amount that went unreported was about 200 million XRP or $84 million in US Dollar value.
The report also found that the “escrow queue” as it is called, is different from what was advertised. The escrow queue is the rate at which money is released from the escrow accounts that are held by Ripple. Coin Metric found that the money was being released faster than the schedule that was announced.
The critical factor and the reason why people are up in arms today is that Coin Metrics noted that other parties that are potentially connected to Ripple had released around 55 million XRP from unknown escrow accounts that are not tied to the main Ripple escrow account. The news got released back in May of this year, and today, a billion XRP tokens have been released from an account held by an anonymous user – BillClintonSecret.
🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 1,000,000,000 #XRP (392,024,346 USD) unlocked from escrow at Ripple Escrow wallet
— Whale Alert (@whale_alert) July 1, 2019
Many think that this is another example of a third party profiting off of Ripple’s users and backers. However, many have leaped to the defense of the company and say that the release is just another normal one. Others aren’t so sure. The Ripple Twitter account being quiet on the issue isn’t a great sign either.
— XRPElites 🇺🇸💯MAGA 🇺🇸 (@XRPElites) July 1, 2019
Ripple ramps up with business activities
The 50 million dollar investment in MoneyGram that Ripple executed was only one of a few steps that the company has taken in the recent past. It recently announced a partnership with London-based Coinfirm. The latest company shaking hands with Ripple has been founded to provide AML services to cryptocurrency companies under FATF guidelines.
Coinfirm’s system searches where accounts are held and based on the laws and regulations on the jurisdiction where the account is held, it halts money-laundering. As an example, two anonymous accounts transfer a large amount of cryptocurrency. One is from an exchange in a lax jurisdiction; the other is from Switzerland or Japan. The system then automatically determines the risk of the action being part of a money laundering scheme or not.
Ripple is among the first ones to sign up with Coinfirm, and in the face of praise-worthy partnership with money remittance firm Moneygram and a host of Japanese banks – this simple step will help the blockchain firm remain a legitimate contender in the fintech space.
The future holds several questions on how Ripple’s escrow situation will play out, but on all other sides, the company is firing on all cylinders and is quickly positioning itself as one of the premier fintech solutions for this new era of Internet finance.
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