finbold.com
XRP price is melting faces with a 110% surge in the last seven days, breaking the $1.00 psychological resistance. This performance surprisingly happens amid strong 3 billion XRP selling pressure from Ripple—the token’s largest holder—in 2024 alone.
Even more notable, XRP is up 123% month-to-date, just after Ripple unprecedentedly prepared its largest monthly dump in the last seven years, reserving and spending 470 million from the 1 billion XRP escrow unlock, as Finbold reported.
Overall, Ripple has reserved and spent 3.046 billion XRP year-to-date, worth over $3.46 billion at current prices. Finbold has been monitoring and reporting these sales in 2024 through XRP Scan, looking at the ‘Ripple (1)’ labeled account.
While the company did not disclose each sale separately, Ripple has already disclosed its selling model on many occasions. According to sources, its XRP sales go through an On-Demand Liquidity (ODL) model, selling at market price to willing customers.
What’s next? Will Ripple sell more XRP soon?
Ripple has one of the largest supply shares of a token in the entire crypto industry. So far, the company has put over 56.93 billion XRP in circulation from its sales since 2012.
Nevertheless, Ripple still holds over 4.43 billion in liquid assets across multiple accounts, with occasional undisclosed sales. Moreover, the US-based company holds over 38.90 billion XRP locked in escrows, with programmed monthly unlocks for the next 42 months, according to Ripple’s Q3 2024 market report.
At current prices, these holdings are worth $5 billion and $44 billion, respectively, and will eventually reach the markets. XRP is trading at $1.1375 by press time, up 80% year-to-date.
On October 21, Chris Larsen, Ripple co-founder and executive chairman, disclosed a $10 million donation to Harris’s campaign in the presidential race.
“It’s time for the Democrats to have a new approach to tech innovation, including crypto. I believe Kamala Harris will ensure that American technology dominates the world, which is why I’m donating $10M in XRP in support of her.”
– Chris Larsen
XRP tokenomics: Ripple holdings, unlocks, and sales 2012-2024
XRP’s tokenomics are based on a fixed supply of 100 billion tokens, all created at its launch in 2012. Unlike Bitcoin (BTC), XRP was entirely pre-mined and arbitrarily distributed, but no new tokens will be generated.
Ripple Labs, the company behind XRP, initially held a significant portion of these tokens. Between 2012 and 2017, there were concerns about Ripple’s sales of XRP and a perceived lack of transparency. Critics worried these sales could impact the token’s value and market dynamics.
In response, Ripple took steps to increase transparency and stability. In 2017, the company placed 55 billion XRP into cryptographic escrow accounts. Each month, one billion XRP is released from escrow, and Finbold has covered all these recent events since August 2023.
Essentially, Ripple uses a portion of these sales to cover operational expenses, invest in the XRP ecosystem, and realize profit for the team.
Featured image from Shutterstock.