Ripple has unlocked 500 million XRP from escrow in two transactions. The first transaction brought 200 million XRP sold for around 123.63 million dollars, and the second one created another 200 million XRP that cost approximately 183.89 million dollars. But this one is odd since Ripple usually arranges them for the first day of any month.
The regular release delay also arouses interest in the context of the current legal battle between Ripple and the US Securities and Exchange Commission (SEC). Big unlocks are now causing much speculation about their times and effects among the community.
Speculations swirl around Ripple’s SEC talks
Amid such unusual deals, there are numerous speculations concerning Ripple’s strategic reasons. Other community members suppose that the funds could be reserved for legal costs as Ripple navigates its lawsuit with the SEC. Some enamored individuals propose a more hopeful situation, in which Ripple might be preparing for a potential settlement with the regulatory body.
Fueling the speculation, a post by user on X using the name @TheJNelsonWay shares a document suggesting that a deal between Ripple and the SEC was close. The document indicates that these discussions are to be held prior to a pretrial conference scheduled for April 16, 2024. This is consistent with the discussions that took place behind closed doors at the SEC just last April 11th. As such, it doubles the kind of discussions that the community is having about whether or not the said agency is deliberating on the issue.
The effect and implications of the XRP unlock
The latest release of XRP not only increases the circulating amount of XRP but also influences the market dynamics and investor psychology towards Ripple. Having a total of 1 billion XRP released in April—the first 500 million having occurred at the beginning of the month and the recent 500 million—the market closely watches Ripple.
These factors have the potential to impact Ripple’s legal battles with the SEC greatly. Market watchers and stakeholders in the cryptocurrency industry are closely monitoring Ripple’s actions because they can influence the future handling of similar cases. The verdict of the SEC lawsuit, most importantly if there is a settlement, could impact the regulatory treatment of various other cryptos and blockchain technologies.
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