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XRP price growth remains weak in early February, despite the blockchain payment network Ripple having released 500 million tokens from its escrow.
Data from the XRP blockchain detected by the Whale Alert monitoring resource on February 1 confirmed that a single transaction of 500,000,000 tokens worth $ 119.5 million left Ripple’s commitment on the same day.
XRP “rewards” the carrier with 26% yield
The move is the latest in a series of planned releases, which Ripple has scheduled to occur on the first of each month for 55 months.
Its purpose is to provide incentives for market makers, with Ripple still retaining control of the newly released tokens.
During the previous January release, XRP / USD barely reacted. Subsequently, the bullish action on the Bitcoin (BTC) markets led many of the major altcoins to rise significantly.
While Litecoin (LTC) for example reaped 65% gains in January, XRP investors are left with little more than a sense of anticipation. Compared to the January lows, the token has risen by a relatively modest 26%.
1 month XRP price chart. Source: Coin360
Suspects, clearance sales and an IPO
In early 2020, Ripple was once again at the center of controversy over its relationship with XRP.
The company owns more tokens than any other party. In a recent interview, CEO Brad Garlinghouse said executives could not control the supply of XRP, also stating that he would take action to prevent other entities from acquiring too much of it.
“We don’t want another party to buy a lot of XRP and dump it on the market,” he said.
Meanwhile, Ripple’s XRP sales for 2019 totaled more than any other year. Around the same time, Garlinghouse hinted that Ripple could conduct an initial public offering, or IPO, at some point over the next twelve months.
