Ripple Labs to Unlock 1 Billion XRP on April 1
Ripple Labs will unlock 1 billion XRP on Tuesday, April 1. The initiative comes from its genesis distribution, an amount estimated at US$2.34 billion, considering the cryptocurrency’s current prices.
At the time of publication, the price of XRP was trading at $2.18, down 6.5% in the last 24 hours. In seven days, the price of the token has fallen by 9%; Ripple’s strategy remains to unlock 1 billion XRP on the first day of each month, reserving a portion for its monthly sales and expenses, while the remainder is locked in new escrow for the following years.
In this sense, the April releases will follow the pattern of previous months, with deposits into the accounts “Ripple (26)” and “Ripple (27)”, accounts controlled by Ripple, being released at the last second on March 31st.
Until January of this year, XRP token unlocks were occurring in the “Ripple (24)” and “Ripple (25)” accounts. The movement left the “Ripple (26)” and “Ripple (27)” accounts with 1 billion net XRP tokens, which were not relocked, as expected.
It is worth noting that XRP may be influenced and react to this event next week, given that the unlocking of tokens may affect the price of cryptocurrencies. This movement occurs because the unlocking increases the supply of tokens in the market, which may cause selling pressure on the token.
XRP Suffers a Sharp Drop: US$ 7 Billion Evaporates in 24 Hours
XRP, Ripple’s native cryptocurrency, suffered a drastic drop in its market capitalization in the last 24 hours. In this period, the token lost an impressive US$ 7 billion, a sudden movement that erased all the gains of the week and left investors on alert.
The price of XRP has plummeted in tandem with the broader cryptocurrency market today. However, Ripple’s token has caught the eye after recording one of the biggest losses of any crypto asset.