How Ripple’s Rumored Token Burn Could Affect The XRP Price
15 Oktober 2023 - 4:03PM
NEWSBTC
XRP has struggled to regain bullish price momentum this month, with
the crypto going on six days of red candle close last week. The XRP
community appears to be feeling the effects of this lack of
momentum, as speculations have begun to circulate about a potential
catalyst for the next XRP price surge. Related Reading: What To
Expect This Month For XRP Price According To Historical Data Word
on the street now is that Ripple plans to burn the 41.9 billion XRP
tokens they have locked up in escrow. Although this hasn’t been
confirmed yet, some say this move could send the value of XRP
skyrocketing. The Potential Impact Of A Full Escrow Token Burn
Ripple, the company behind the XRP cryptocurrency, currently holds
billions of XRP in escrow. As of the time of writing, Ripple has
41.9 billion XRP locked up, with 1 billion XRP released from escrow
each month. This huge stockpile of XRP has led to criticism that
Ripple could flood the market at any time and crash the
price. However, rumors are swirling that Ripple may burn all
of the XRP in escrow, potentially spiking up the price of XRP. If
Ripple eliminated all of the escrowed XRP, it would significantly
decrease the total supply of XRP and could positively impact the
market price. The rumor was started on social media X by the
account @realXRPwhale and has elicited a response from community
members. Although unverified, the account posted the update of
Ripple, burning the “50 BILLION $XRP.” While some have shown
enthusiasm regarding the price effect if this happens, others have
dismissed it as just a baseless rumor. What’s Next For XRP?
Ripple has never acknowledged or refuted rumors that it will
destroy all of its tokens held in escrow, but this is not the first
time that such a rumor has emerged suggesting that the technology
company will do so. But the possibility of this happening is not
completely out of the question, as Ripple CEO Brad Garlinghouse
mentioned in a 2021 interview. Other factors that could drive up
XRP prices include major partnerships by Ripple and a clear outcome
of the ongoing case with the US Security and Exchange Commission.
However, one thing that’s going so well is the increased
recognition of XRP after a US judge declared that the token isn’t a
security. Related Reading: Road To $1? Analyst Forecasts
1,500% Price Rally For Dogecoin At the time of writing, XRP is
trading at $0.4863 and is within a range as it looks to break above
$0.5. According to an analyst, the price of XRP could get a boost
from a blooming altcoin season if Bitcoin’s dominance continues to
decline. Research has shown that October has historically seen more
losses than gains for XRP. Cover image from Unsplash, chart from
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