In the early hours of Friday, Ripple unlocked nearly 1B XRP tokens from its escrow wallet. The unlocked tokens were done through three separate transactions. However, it has locked in more than 50% of the unlocked tokens in different trades.
Recent data from the on-chain analytics platform, WhaleStats, revealed that Ripple had locked back about 750M XRP tokens to its escrow wallet early this morning. Many industry analysts view Ripple’s actions are moves to prevent a price crash of the XRP token.
A Different Unlocking Approach
Ripple’s technique of unlocking its native token differs significantly from the methods used by other crypto projects. Following the launch of its ICO, Ripple had held most of its tokens in an escrow wallet. This is remarkably different from what other projects do. They produce new coins through the PoW or PoS model.
The Ripple team owns 54% of the 100B XRP in supply circulation. However, the team had previously announced that it would be releasing these coins in bits when the bull market from five years ago ended. A gradual release of the coins into the market would help maintain a decent value for the coin. Tokens or coins with a substantial circulating supply are usually less valued.
Ripple maintains a decent value for XRP by locking back some of the available XRP in supply to its escrow wallet from time to time. Ripple continues to make several moves that will prevent or significantly reduce its investors’ losses as it remains in an unending legal tussle with the US SEC.
Ripple-SEC Legal Battle To Air In The Metaverse
Meanwhile, multiple reports are stating that content aggregator platform (Mcontent) and foremost audit firm (PriceWaterCoopers, PWC) have entered a collaboration to release a documentary in the metaverse detailing the Ripple-SEC legal saga. MContent also collaborated with Dutch-based Insight TV and Villain Studios to produce the documentary. However, neither Mcontent, PWC, nor any of the partners disclosed the date or time for the documentary’s release.
Interested viewers can view the documentary via their augmented reality glasses, such as the Oculus VR headsets to view the documentary. MContent chief executive, Umair Masoom, opined that “this documentary’s release on the metaverse would give mass adoption capability or global scalability for the metaverse space.” He further said, “it also gives independent filmmakers a new medium to showcase their works.”
The Ripple-SEC Saga Continues
Ripple has been immersed in a legal battle with the SEC for nearly two years after the US financial watchdog accused the blockchain firm of selling its native token as securities without legal approval. However, Ripple is yet to admit to the SEC’s accusations, standing on its ground that its XRP tokens are digital currencies and not securities.
More importantly, neither the SEC nor Ripple wants to shift ground regarding their assertions for the case to be settled amicably. As of this writing, Ripple has until April 4, 2022, to accede to or reject the SEC’s request in removing some parts of previous meeting details with the financial watchdog.