Yesterday, 500 million XRP was locked in an escrow at Ripple at 23:34:20 UTC. The transaction was termed- “back to me.” Whale Alert announced this news on Twitter today. Whale Alert is a platform that records the live tracking of huge amounts of cryptocurrency transactions that take place between or from crypto exchanges.
How are escrows important?
A few days ago, Ripple, the U.S-based blockchain tech, underscored the importance of the XRP escrows. The platform announced that it is expecting escrows to be instrumented for larger value “one-ledger and cross-ledger atomic payments.” As per the Ripple Insights blog, additional XRP predictability was aimed at ensuring more and more escrows. The blog explained how by escrowing 55 billion XRP to attain the purpose. Further, the Chief Technology Officer at Ripple- David Schwartz explained:
The escrow consists of independent on ledger escrows that release a total of one billion XRP each month over the next 55 months. This provides an upper limit on the amount of new XRP that can be brought into circulation. The amount of XRP actually released into circulation will likely be much less than this.
The official Ripple’s blog explained the company’s vision behind the escrow technology. As per the blog, the key features that this technology offers are:
- Brings in more predictability to the XRP supply
- Escrow to be used for higher values, ‘on-ledger, cross-ledger atomic payments with the help of Inter ledger Protocol.’
- Offers payment channels for ‘lower value, off-ledger payments, and micropayments’
Two 500 Million XRP escrows, in the next 30 months:
As per Ripple XRP news‘ reports, in late January, Ripple announced that in the next 30 months, there would be two escrows worth of 500 Million XRP each. One has taken place, and we need to wait for the next one. Upon successful completion of the escrows, the platform has claimed that the XRP will be sent back to its destination in order to maintain the security and integrity of the ledger. In case, when the escrow gets canceled, the XRP is sent back to the account where the XRP came from.
The promised XRP Sale dip:
On the other hand, the blockchain platform also assured about the decline of the sales of the digital assets to the exchanges. It was expecting this decline around the coming quarters. The continuous sale of XRP digital tokens to the exchanges has also lead many XRP community members to think that this kind of continuous sale is the reason behind the spike in the price of XRP.
Ripple, on the other hand, doesn’t agree with this school of thought. Rather, the third-largest digital currency platform has always repudiated any kind of control on the price of XRP. It has ensured that it is not using the monthly sales for the price controlling purposes. The platform is using the escrow technique to use any leftover additional XRP in the next escrows. In recent times, it has been observed that the blockchain platform has got doubly serious in the escrow measures due to the numerous rumors that surrounded the platform.
As of now, Ripple, along with the top altcoins in the market, is following the same price trend with no price retraction.