The escrow tracker at XRPArcade, a publication dedicated mainly to XRP, revealed that the release and sales of XRP tokens locked in Ripple escrows are likely to continue for over two decades.
Ripple has a gargantuan XRP hoard that they locked up in a series of escrows in late 2017 and planned to release the funds monthly over a 55-month period. It seems, though, that selling all the XRP in escrows will take more than 55 months for the San Fransisco-based payment firm to do.
Ripple’s Escrow Will Take More Than Two Decades To Run Out
In the crypto world, Ripple’s massive XRP store and its monthly sales have long been a hot-button issue, with many arguing that this makes XRP highly centralised. Back in 2017, the firm releases 1 billion XRP coins every month since it locks 55 billion in different escrows.
Despite complaining about these periodic sales by the XRP community hampering market capitalization growth of the third-largest cryptocurrency, Ripple has continued to unlock a billion tokens each month with the remaining tokens being transferred to a new escrow.
Ripple sells approximately 196 million XRPs per XRPArcade each month. So far, roughly 5.5 billion XRP has been released from the escrows since Ripple started the scheduled releases of escrows.
If Ripple continues with the same rate, the last escrow will take at least 252 months (basically 21 years) to complete, XRPArcade noted.
Despite Ripple’s claim to have significantly reduced their quarterly sales, it has done little to help XRP recover from the crypto abyss. In the first trimester of 2020, XRP lagged behind. At the moment, XRP is down from the all-time high posted in early 2018 by more than 94 percent.
To make matters worse, Brad Garlinghouse, CEO of Ripple, revealed earlier this year that the start-up of blockchain payments “would not be profitable or cash flow positive without selling XRP”.
Ripple will release the XRP market report for Q1 2020 later this month which will reveal how much XRP has been sold during that month. Whatever that maybe, sales are likely to continue more than 20 years to come.