• Ripple Labs continues to sell XRP tokens from the escrow account despite a lawsuit filed by the SEC.
• Ripple received 1 billion XRP from the escrow account in several batches.
• The XRP community hopes for a speedy resolution to the lawsuit, as it has dragged down the asset’s performance over the past two years.
Ripple Unlocks 1B XRP From Escrow Account
Ripple Labs recently unlocked 1 billion XRP tokens from its escrow account, with 400 million of those tokens being sent in two separate transactions and 100 million being sent in two other transfers. This comes amidst an ongoing lawsuit between Ripple and the US Securities and Exchange Commission (SEC).
SEC Accuses Ripple of Selling Unregistered Securities
The SEC has accused Ripple of selling unregistered securities through its sales of XRP tokens. Furthermore, current SEC chair Gary Gensler has suggested that every cryptocurrency except Bitcoin is an unregistered security. This statement has been met with criticism from many crypto lawyers and enthusiasts alike.
XRP Performance Dragged Down By Lawsuit
The ongoing lawsuit between Ripple and the SEC has had a negative impact on the performance of XRP over the past two years. Despite this, Ripple continues to use its XRPs from the escrow accounts to incentivize developers on its platform as well as institutional financial partners who are looking to use their services via RippleNet.
XRP Market Outlook & Price Analysis
The price of XRP has been consolidating within a macro-wedge formation since hitting its all-time high around $3.4 back in 2018, with a daily death cross between 50 and 200 MA acting as a strong resistance level currently preventing any further upside movement in price. Analysts believe that should history repeat itself, then we could see another surge in prices soon enough if support levels at $0.32 and $0.35 hold up against any downside pressure coming into play later on down the line.
Despite having released 1 billion XRPs from its escrow account recently, there remains uncertainty surrounding whether or not these tokens will have any significant impact on their market performance given that they are still under investigation by the SEC for allegedly selling unregistered securities via their sales of these tokens over recent years