In the wake of Ripple releasing 1B XRP from escrow, prominent Cardano (ADA) enthusiast Chris O asserts that XRP does not have a good return on investment (ROI).
Reacting to reports of Ripple unlocking 1 billion XRP from escrow, Chris O stated that the initiative will always mount heavy selling pressure on the fifth-largest cryptocurrency.
According to Chris O, many XRP investors would be disappointed as the crypto asset underperforms in stark contrast to their expectations.
Ripple Unlocks 1B XRP
It bears mentioning that Ripple released 1 billion XRP coins from its escrow account in the early hours of yesterday. Shortly after the transaction, Ripple re-locked 800 million units from the 1B coins released. As a result, Ripple kept 200M XRP to be sold in the market at any moment.
Meanwhile, Ripple’s recent XRP unlock initiative did not have a negative impact on the price of the crypto asset. As reported earlier, XRP price spiked 1.5% after the company released the 1 billion coins.
Ripple has always exercised caution when selling XRP. In its Q4 2022 report, Ripple disclosed that it has only sold XRP to On-Demand Liquidity (ODL) clients.
For clarity, ODL, now rebranded to Ripple Payments, is a solution that enables users to facilitate cross-border settlements. It leverages XRP as a bridge between two fiats for instant and cheap settlements across borders.
XRP Price Spikes in Q3 Despite Ripple Massive Sales
As reported earlier, Ripple sold a whopping 892 million XRP worth around $544.12M in Q3 2023. Despite selling massive amounts of XRP, the asset’s price still surged tremendously in the quarter.
The Crypto Basic reported that XRP closed Q3 2023 at a price of $0.52, representing a 9.8% increase compared to the figure recorded in the previous quarter.
Furthermore, XRP’s market cap also experienced significant growth in Q3, surging to $27.8 billion from the $24.8 billion recorded in Q2 2023. At press time, XRP’s market cap stood at $33.16B, placing the coin as the fifth-largest cryptocurrency by market cap.
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