The Ripple blockchain technology provider has released another one billion XRP tokens as its lawsuit against the SEC continues. Ripple continues to do so even as it wages a legal battle against the SEC, the official US agency that provides security and regulation for investors. On July 1, another one billion XRP was withdrawn from escrow by Ripple DLT. The release of these huge amounts of XRP was pre-programmed to occur on the first day of each month for several years in a row.
Meanwhile, the seventh-largest cryptocurrency, XRP, still hasn’t recovered from the drop below $1 and is changing hands at $0.6515 at the time of writing. Another one billion XRP has left Ripple escrow. Come July 1, the San Francisco-based blockchain giant has unlocked another one billion cryptocurrencies tied to it. This equates to more than $704 million in fiat money.
Ripple released its regular 1,000,000,000 XRP in two transfers of 500 million each. As a rule, about eighty percent of this huge amount of cryptocurrencies is usually locked in escrow (800 million), while the rest is sent to financial institutions and crypto exchanges that cooperate with Ripple to support the liquidity of XRP, generate cash for the operational expenses of the company and.
Partnership agreements between Ripple and banks, payment companies and other institutions (more than 350) often require them to use Ripple’s payment network RippleNet and XRP token. In the past, many in the crypto community have accused Ripple of preventing the XRP price from rising with these regular releases of 1 billion XRP. A campaign has been launched on the Change.org portal to demand that Ripple stop throwing large amounts of XRP into the market. However, this attitude has changed over time as it became clear that the price of the coin (which ranked third in the top ten cryptocurrencies a few years ago) is not affected by coins opened from escrow every month.
XRP released despite ongoing SEC litigation
The US securities and exchanges regulator has taken legal action against Ripple Labs and two of its most high-profile executives, Christopher Larsen (co-founder and former CEO) and Bradley Garlinghouse (current CEO). The SEC accuses the company and its two executives of selling unregistered securities (XRP) to institutional investors since 2013 and making more than $1.3 billion from those sales. Still, Ripple continues to release XRP from escrow and send some of it to financial institutions that cooperate with Ripple and use the blockchain technology it provides.