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- Ripple has over the years used the monthly unlocks to invective financial institutions seeking to use its ODL and RippleNet products in enhancing cross-border payments.
- The blockchain payment company, however, has been accused by the United States SEC of submitting the burden to retail traders, hence acting as a security in disguise
As the crypto market opened in October with a bullish outlook on Monday, blockchain payment company Ripple unlocked another 1 billion XRP from the embattled escrow account. According to on-chain data provided through the XRP Ledger, the company returned more than half of the unlocked assets to the escrow account as of reporting time.
However, some high-value transactions have been observed in the past two days leaving an unknown address to Bitstamp crypto exchange. Worth noting that Ripple acquired an undisclosed stake at Bitstamp earlier this year, hence giving it a better XRP liquidity hub.
Ripple has used hundreds of millions of dollars in legal advice, thus making the Bitstamp and the rest of recent acquisitions a strategic move to improve XRP’s liquidity. Moreover, New York District Judge, Analisa Torres, ruled that XRP sales to the secondary market through exchanges do not constitute investment contracts, unlike direct sales to financial institutions.
How Ripple Spent the Recent XRP Escrow Release
According to a detailed XRPL analysis conducted by Whale Alert on the X platform, Ripple received 400 million XRP units worth approximately $205 million on October 01.
The company then received 100 million units in a different transaction worth approximately $ 51.4 million. In the last transaction from the escrow account, Ripple received 500 million XRP units worth approximately$ 257 million.
Out of the received XRP from the escrow wallet, Ripple locked back about 800 million XRP to the escrow wallet to be unlocked in later months. With about 200 million fresh XRP at its disposal, Ripple is believed to have sent about 28.5 million units worth approximately $14.7 million at current prices of about 52 cents to the Bitstamp crypto exchange.
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Over the next coming weeks, Ripple is likely to spend the rest of the XRPs at its disposal through the Bitstamp route to avoid getting at loggerheads with the United States SEC.
The recent unlocking of 1 billion XRP coincided with a general bullish in the crypto market from the ‘Uptober’ narrative. In this regard, XRP price had gained about 5 percent in the past five days to trade around $0.523 on Monday.
The recent party hosted by Ripple in New York helped sensitize the matter that XRP is not a security to more retail and instructional investors seeking to have crypto exposure. According to our latest crypto market data, XRP had a fully diluted valuation of approximately $52 billion and a 24-hour trading volume of about $808 million, thus making the digital asset a large-cap altcoin in the same category as Ethereum and Binance coin BNB.
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