This month, XRP has had difficulty regaining positive price momentum; this week, the cryptocurrency had six days of red candle closes. This lack of momentum seems to be affecting the XRP community, as rumours regarding what may trigger the next spike in price have started to spread.
The 41.9 billion XRP tokens that Ripple has placed in escrow are reportedly going to be burned. Although it hasn’t been verified yet, some believe that this action might cause XRP’s value to soar.
Possible Consequences Of A Complete Escrow Token Burn
The business that created the cryptocurrency XRP, Ripple, presently has billions of XRP in escrow. With 1 billion XRP being released from escrow each month, Ripple has 41.9 billion XRP locked up as of the time of writing. Critics claim that Ripple might flood the market at any time and cause the price to plummet due to their massive XRP hoard.
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Ripple’s Token Burn Potential: What It Means for XRP Price,Ripple’s Token Burn Potential: What It Means for XRP Price
Rumours, nevertheless, suggest that Ripple would burn up all of the XRP in escrow, which might drive up XRP’s price. The whole supply of XRP would be greatly reduced if Ripple removed all of the escrowed XRP, which would have a favourable effect on the market price.
The @realXRPwhale account initiated the rumour on social network X, and it has prompted a response from members of the community. The account published the Ripple update, burning the “50 BILLION $XRP,” despite not being authenticated.
Some have expressed excitement over the potential price impact if this occurs, while others have written it off as a mere rumour.
How Does XRP Go Forward?
It is not the first time that a rumour has surfaced implying that the software company will destroy all of its tokens kept in escrow, but Ripple has never confirmed or denied the rumours. But as Ripple CEO Brad Garlinghouse said in a 2021 interview, it’s not totally out of the question that this may happen.
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Major alliances formed by Ripple and the resolution of the current legal dispute with the US Securities and Exchange Commission are two more elements that might raise the price of XRP. But one thing that’s doing really well is that XRP is becoming more widely-known after a US judge ruled that the token isn’t a security.
Ripple’s Token Burn Potential: What It Means for XRP Price,Ripple’s Token Burn Potential: What It Means for XRP Price,Ripple’s Token Burn Potential: What It Means for XRP Price