Ripple continues to adhere to the holding policy of the majority of XRP tokens from the company's escrow wallet. This time, 90% of the tokens returned to the locked wallet address.
Most deposits this month are returned
In the latest monthly margin operation, Ripple has returned 90% of the total amount of 1 billion XRP. Only 100,000 XRP were retained, after the tokens were transferred back to the escrow wallet in 3 major transactions.
The largest recorded return is 500,000 XRP.
,000,000 🔒 🔒 🔒 🔒 🔒 🔒 🔒 🔒 🔒 500,000,000 #XRP (114,771,339 USD) locked in escrow at Ripple
– Whale Alert (@whale_alert) March 2, 2020
These activities are in line with a recent Ripple statement of intent to hold the majority of XRP tokens locked in escrow. This has a calming effect on the market and can drive the price of XRP higher.
XRP is currently trading at $ 0.23 – down 14% due to a sharp correction last week. But by 2020, XRP has had a significantly higher transaction volume, maintaining at $ 2 billion per day. At that price, XRP is still considered a “risk betting” and is a “crazy card” for potential evaluation at a much higher price.
Selling XRP has been a controversial issue in the market's undervalued assets. The XRP tokens sold to Ripple's former CTO, Jed McCaleb, are also a potential factor to flood the market with this currency. Early airdrops and early adoption, also weighed on prices.
Ripple relies on XRP sales to make a profit
Recent analysis also shows that blockchain payment startup relies on selling XRP for profit. Because RippleNet is still operating at the early stage, XRP assets are in fact a significant source of revenue.
As Toiyeubitcoin reported yesterday, Ripple's CEO admitted that XRP is an important factor contributing to the company's revenue. XRP – launched a few years ago, was not originally part of the idea to provide an alternative Ripple interbank payment system.
"XRP is a source of revenue for the company. I don't know how to answer it because if we give up our software revenue, of course we will have less profit. If we remove XRP, we will also have less profit. Therefore, I will not assume such cases. "
“We will not make a profit or positive cash flow if we do not sell XRP.”
Ripple continues to expand its list of partners and banks, to increase the use of its On-Demand Liquidation (ODL) solution on RippleNet. But so far, the actual use of XRP is limited and the assets depend heavily on speculation in the open market.
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According to Bitcoinist
Translated by ToiYeuBitcoin