Ripple Labs, the San Francisco-based blockchain company, has released 1 billion XRP scheduled from its escrow addresses.
The move has become customary on the first day of every new month for the company. The release is tracked by Whale Alert – a platform that specializes in tracking digital currency movements.
The release of 1 billion XRP was split into four transactions. Two of the transactions contain 400 million XRP each, while the other two carry 200 million XRP each. Ripple’s regular and programmed XRP issuance is intended to promote liquidity and support the company’s operations.
However, the timing of this release could not have been more sensitive for Ripple Labs, as the new company received a favorable ruling in an ongoing legal battle with the US Securities and Exchange Commission (SEC). The company has been caught up in a protracted dispute with the SEC over XRP’s status and whether it qualifies as a security.
The situation may change after the judge overseeing the Terraform Labs case stated that XRP’s ruling did not apply in this case.
This ruling deals a major blow to Ripple’s regulatory position as it sets a precedent that could be detrimental to Ripple in its ongoing legal battle with the SEC.
According to Shannon Thorp, Chief Treasury Officer at Wells Fargo, XRP could reach a price range of $100-$500 within the next four to seven months. If XRP hits $100, that would be a 14,088.52% growth. If it hits $500, the growth will be 70,842.61 %.
According to Thorp, the XRP community is divided. One faction only looks at XRP chart patterns, while the other only looks at the utility of XRP and Ripple. Thorp said many are downplaying XRP’s potential and going against Ripple’s fundamental vision.
Thorp considers JP Morgan a top bank with a daily trading volume exceeding $8 trillion. Thorp speculates that if Ripple captures only 10% of this market (up to $800 billion), the 75 billion XRP currently in circulation will not be enough to effectively handle such a large sum. However, this estimate only applies to cross-border transactions and does not include derivatives, real estate, CBDCs, and NFTs.
Based on the LS example, Thorp predicts the XRP price will be between $100 and $500 shortly. If the supply is 50 billion XRP, a token price of $100 would yield an LS of $5 trillion. Meanwhile, $500 would lead to an LS of $25 trillion.
According to Thorp, this value provides “breathing” for the market. Furthermore, this allows for growth and ensures that no single entity needs to hold billions of XRP for day-to-day operations.
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