- November 4, 2024
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
The post XRP News: The Ongoing Debate Around Ripple’s Escrow and XRP Price Movements appeared first on Coinpedia Fintech News
Ripple’s Q3 2024 Markets Report, released on November 1, has reignited debates in the crypto community over the company’s XRP escrow holdings. Ripple’s escrow balance decreased from 39.5 billion at Q2’s end to 38.9 billion in Q3, with the mechanism set to release one billion XRP monthly for the next 42 months.
As the SEC vs. Ripple case drags on, investor anticipation builds around potential market impacts, particularly on XRP’s price. Despite some in the XRP community fearing that escrow releases may suppress prices, XRP-supporting lawyers have countered these concerns.
In a recent X post, crypto lawyer Bill Morgan addressed misunderstandings surrounding Ripple’s XRP escrow and its impact on XRP’s price. Responding to claims that the SEC’s lawsuit against Ripple asserted the escrow as a price-boosting mechanism, Morgan refuted the idea, asserting that the escrow doesn’t suppress XRP’s price as some believe.
User Responses Reflect Differing Views on XRP’s Price Impact
Morgan’s comments have drawn mixed responses. X User @WelcomeNowLeave asked for a detailed explanation of how escrow holdings affect retail investors and financial institutions. Meanwhile, another user, 박탱고 (@BagtaengG), argued that the escrow volume does suppress XRP’s price, suggesting that significant holders may overlook this impact.
Morgan firmly responded, denying that escrow holdings exert downward pressure on XRP prices, reinforcing Ripple’s stance that the escrow represents responsible fund management, not price manipulation. This discussion highlights ongoing debates within the XRP community about the effects of Ripple’s holdings on market prices.
XRP Current Market Snapshot
Apart from other factors, the ongoing SEC vs. Ripple case weighs heavily on XRP’s price movements. Following the Programmatic Sales ruling in July 2023, XRP spiked to $0.9327 as US exchanges relisted it.
However, the looming SEC appeal drove XRP below $0.50 in August, and the October 2024 appeal filing pushed it under $0.60, where it has since stagnated. An SEC victory could lead to XRP’s delisting in the US and hinder prospects for an XRP spot ETF.
Investors await the SEC’s opening brief due January 15, 2025, just days before the presidential inauguration, to gauge the appeal’s impact.
