Ripple has recently found itself at the center of two significant developments. First, its monthly release of 1 billion XRP tokens from escrow continues to generate debates about its impact on XRP's value.
Second, Ripple's ambitious plan to acquire Fortress Trust abruptly collapsed, raising eyebrows in the crypto community. This article delves into these unfolding events that could shape Ripple's future.
Ripple's Monthly Escrow Releases
Ripple's practice of unlocking 1 billion XRP tokens from escrow every month, while aimed at enhancing liquidity and network utility, has sparked concerns this time around. Recently, on September 30, 2023, Whale Alert reported three unlockings totaling over $514 million at a market price of $0.5170 per XRP.
Historically, such events have correlated with XRP price drops, especially in volatile market conditions. However, Ripple has shown a willingness to relock a substantial portion of released tokens to mitigate selling pressure. With October's relocking amount pending, the crypto community eagerly awaits Ripple's decision.
Ripple's Fortress Trust Deal Collapse
On September 8, 2023, Ripple announced a significant move in its expansion plans by revealing its intention to acquire Fortress Trust, a chartered trust company headquartered in Nevada. Fortress Trust specializes in providing licensed Web3 financial, regulatory, and technology infrastructure services to blockchain innovators, aligning perfectly with Ripple's goals to expand its global footprint and offer enhanced services to its user base.
Ripple's engagement with Fortress Trust had been well-established, with Ripple having been an early investor in Fortress Trust's parent company, Fortress Blockchain Technologies.
However, the situation took an unexpected turn on September 28, 2023. Ripple's CEO, Brad Garlinghouse, took to Twitter to announce a change of course. The planned acquisition of Fortress Trust would no longer proceed as initially outlined. Instead, Ripple would continue to support Fortress Trust while retaining its status as a shareholder in Fortress Blockchain Technologies.
Although Garlinghouse did not elaborate on the reasons behind this decision, he did praise Fortress Trust's team and their customer-centric solutions. This announcement came merely weeks after the acquisition plans were made public and just days after Fortress Trust reported a significant crypto hack that had resulted in losses ranging from $12 to $15 million. Ripple responded promptly to this incident by wiring $15 million to compensate affected customers, demonstrating its commitment to its partnerships and responsibilities.
This decision to alter the acquisition strategy unfolds amidst Ripple's protracted legal battle with the U.S. Securities and Exchange Commission (SEC). The SEC has accused Ripple of selling unregistered securities through its XRP token sales dating back to 2013.
This legal dispute has cast a shadow of uncertainty and controversy over XRP's status, Ripple's business model, and its partnerships. The resolution of this case is anticipated by early 2024, adding further complexity to Ripple's journey.
XRP Develops Subtle Upward Trajectory
On the technical front, XRP gained a bit of momentum this past week after a prolonged period of consolidation. The cryptocurrency made a go at the $0.5500 resistance on September 29 but was promptly rejected as it returned to its repressed price action.
Interestingly, in the midst of its recent uneventful price action, a subtle upward trend has emerged for XRP, suggesting a resumption of upward attempts. That said, we should expect to see a retest of the $0.5500 mark in the first week of October and a possible bullish continuation towards $0.6000.
XRP Statistics Data
XRP Current Price: $0.5170
XRP Market Cap: $27.5B
XRP Circulating Supply: 53.3B
XRP Total Supply: 100B
XRP Market Ranking: #5
This article should not be taken as financial advice. It is essential to conduct research before making any investment decisions.