Ripple has done it again, and this time around, it’s a whole 1 billion XRP tokens getting released into the crypto market.
The company made the move a few hours ago to mark the opening of the new month of May. This happens just as the crypto market makes a quick recovery from last week’s slump that was sparked by news of Bitfinex’s scandal involving customers’ money.
As is the custom, Ripple releases a billion XRP from its escrow account into the market every month. Some of it is sold out, and the remainder is put back into a separate escrow account awaiting another release window. News of the huge release was broken by the Whale Alert via a tweet.
$170 Million In Q1
In a report covering the first quarter of 2019, Ripple intimated that it sold XRP tokens worth about $170 million over that period.
That amount accounts to around 0.32% of the company’s global volume. The company also released about 3 billion XRP over the first quarter. However, 2.3 billion XRP were returned and relocked into the escrow account. In April alone, Ripple released 1 billion XRP into the market.
Sponsorship And Ecosystem Support
Since Ripple went global and XRP started gaining considerable popularity, the crypto’s use cases have increased, with companies like XRPL Labs making great efforts to develop apps designed to run on the XRP Ledger.
XRPL Labs’ work is sponsored by Ripple. Other companies supported include Bolt Labs and Forte. The companies create payment solutions and programming platforms based on Ripple’s XRP Ledger model.
Ripple plans to use the released XRP to support the crypto’s ecosystem through sponsorship, research and development, and exchange trading.
The news of the XRP release was met with varying reactions in the crypto community and XRP critics. According to some, the fact that Ripple can release cryptos into the market whenever it wants makes XRP a centralized cryptocurrency and open to market manipulation.