Twitter profile @Whale_Alert made an interesting find on the Ripple Blockchain today. 1-Billion XRP were moved from Escrow by the fintech company.
The extraction of the 1-billion tokens happened in three transactions. First 500,000 tokens, then 300,000 tokens, and last 200,000 tokens.
The total value in USD of the 1-billion XRP coins today (September 1, 2022) is about $237-Millon-Dollars when converted..
A shocking number to see any wallet move, this is not a peculiar activity in actuality. Ripple takes out 1-billion tokens from escrow at the beginning of every month. However, only between 100-200 million XRP tokens of this 1-billion get added to circulating supply. The rest get locked back into escrow.
This 1B movement is to support XRP liquidity. Ripple’s maintained a formula that requires this release at the beginning of each month since 2018.
By crypto liquidity, this means the release of tokens into live supply somehow helps maintain the XRP ecosystem and keeps the token price at a reasonable level for ready cash out. Without this, it’s possible a whale or sudden buy or sell trend could completely destabilize the XRP coin value.