Ripple Price Leaps 13% After Company Escrows 55 Billion XRP
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Ripple Price Rallies 13 Percent
The ripple price had spent the majority of the week in decline, falling from $0.254 on December 1 to $0.222 this morning. However, shortly before 1:00 UTC, the ripple price shot up as high as $0.272 before leveling off to a present value of $0.250 — a 12-hour gain of nearly 13 percent.
Ripple’s daily trading volume swelled to nearly $700 million, with nearly half of that concentrated on the South Korean exchanges of Bithumb, Coinone, and Korbit.
Ripple Escrows 55 Billion XRP
The apparent justification for the upswing is the announcement that Ripple — the fintech startup behind XRP — had officially placed 55 billion of its estimated 61.8 billion XRP into escrow. Each month, 1 billion tokens will be unlocked for Ripple’s use, and any unused tokens will be placed back into escrow.
This development eliminated the threat that Ripple could flood the market with XRP, effectively crashing the price. Though highly unlikely, this scenario was possible since Ripple holds almost twice as many XRP than are currently in circulation. Now, XRP investors know with certainty the rate at which new tokens will enter the market, enabling them to better establish a fair value price for the token.