To Ensure A Stable Supply, Ripple Places 55 Billion XRP In Escrow

[Guest]

To ensure supply of its digital currency, XRP, Ripple will place 55 billion XRP into a secure Escrow account by the end of 2017. To build trust and liquidity, Ripple aims to remove the uncertainties about the distribution of XRP. Escrow will allow parties to secure XRP until the transaction completes and required conditions are met. Ripple will establish 55 contracts of 1 billion XRP each. Each contract will expire on the first day of the month for 55 consecutive months. After expiration, the XRP will become available for the Ripple’s use. Ripple will return the remaining XRP to the Escrow account.
https://www.ripplecoinnews.com/to-ensure-a-stable-supply-ripple-places-55-billion-xrp-in-escrow

[Dorious]

Title lead me to believe it had just happened...lol

 

 

Edited September 22, 2017 by Dorious

[Danny]

My goodness, same here! Almost had a heart attack 

Edited September 22, 2017 by Danny

[XRPtoRiches]

14 minutes ago, Dorious said:

Title lead me to believe it had just happened...lol

 

 

 

hahaha same

[Guest]

My first thought was....   'Very cunning Ripple...  build up momentum on the way in to Swell'.

[Chellefire]

Me too! And I haven't had a chance to buy more yet!

Edited September 22, 2017 by Chellefire
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[TLG]

i got really excited.....for 0.68 seconds lol

 

[robertbruce]

ditto's & just a taste of what's to come, wooohooo....

[Nilfmonkey]

What's so exciting about them putting the money in escrow? I don't think it will have a huge effect on price. If anything the news has been priced in since the summer. And it won't really alter the supply/value of XRP, because anyway Ripple has been holding whatever XRP it doesn't sell each month. 

The only point of this is to raise transparency, but again, that's already been priced in.

[mulder]

https://ripple.com/build/escrow-tutorials/

[Guest]

8 hours ago, Nilfmonkey said:

What's so exciting about them putting the money in escrow? I don't think it will have a huge effect on price. If anything the news has been priced in since the summer. And it won't really alter the supply/value of XRP, because anyway Ripple has been holding whatever XRP it doesn't sell each month. 

The only point of this is to raise transparency, but again, that's already been priced in.

No the real benefit of the escrow is the certainty about supply that it will provide to institutional investors like pension funds etc.

Price is a result of supply and demand.  Although you and I are willing to bet that ripple are good guys and will do what they say, fund managers must have a more defined risk environment than we do.  To have sufficient confidence in their supply and demand calculations they must wait until it's a reality.

So the effect of large institutions finally being able to invest in XRP can't be 'factored in' to the price.  Their move into the market will affect the price only when it happens....  and it won't happen in the large until after the escrow is actually performed.

[Storm]

My theory is that Ripple already made unofficial deals with some large customers for lots of XRP, but are waiting to make it official until the escrow is implemented. It would not make sense for Ripple to sell large bulks of XRP when the supply is somewhat limited after taken into the account the circulating supply, plus the 55b that they promised for the escrow. 

What I mean is that he 55b has already been earmarked for creating the market, and will likely go at a favourable price, as seen in the R3 agreement. And of the remaining 7-8b, 5b has a possibility of being "given away" to R3, then only 2-3b XRP remains unlocked, which they can sell at a market price when the corporation needs capital. Therefore I would not assume they would be interested in making deals with that XRP, and will therefore make deals now that will be put into action once the escrow goes live. 

So my guess is that with the escrow being announced, different agreements will see the light as well.

I hope my speculation makes sense.

[Guest]

Looks like Ripple lock up could be taking place. Last 24 hour ledger payments is over 3bil. From memory it was very high the previous 24 hours as well

[GiddyUp]

1 hour ago, Pointbreak said:

Looks like Ripple lock up could be taking place. Last 24 hour ledger payments is over 3bil. From memory it was very high the previous 24 hours as well

Good eye, I will pay closer attention if that's at all possible LOL