XRP News Today: Ripple's Escrow Strategy Counters Dump Theory as XRP Surges 500% in 2025

Ripple’s legal counsel, Bill Morgan, has dismissed the persistent "XRP escrow dump theory," arguing that ongoing token releases from escrow accounts do not undermine the asset’s price. The theory, which claims Ripple manipulates XRP’s value by periodically releasing tokens to fund operations, has been repeatedly refuted by Morgan, who highlighted the token’s price trajectory as evidence of market resilience. Despite continued escrow distributions, XRP’s value surged from $0.50 to over $3 in 2025, a period marked by increased institutional buying and stable investor confidence [1].

Morgan emphasized that Ripple’s escrow mechanism is designed to stabilize XRP’s value, aligning with regulatory acknowledgment of its transparency. The U.S. Securities and Exchange Commission (SEC) has recognized the escrow strategy as a tool to prevent price volatility, countering allegations of artificial suppression [2]. On-chain data further supports this, showing sustained institutional interest in XRP despite periodic releases. Ripple’s approach, which involves scheduled token unlocks rather than sudden large-scale dumps, has fostered market stability rather than disruption [3].

Critics of the dump theory have pointed to XRP’s historical performance to challenge the narrative. Since early 2018, the token’s price has not shown consistent negative reactions to escrow releases, contradicting claims of market manipulation. Morgan’s rebuttals, coupled with regulatory validation, have shifted the debate toward transparency and strategic supply management. Analysts note that while the legal framework surrounding XRP remains contentious, the alignment with regulatory expectations strengthens Ripple’s defense [4].

The controversy underscores broader challenges in cryptocurrency markets: distinguishing between legitimate supply management and manipulative practices. Proponents of the dump theory argue that centralized control over token distribution risks undermining decentralization principles. However, the observed market dynamics—where demand outpaces supply increases—suggest that XRP’s performance is driven by external factors such as institutional adoption and macroeconomic trends [3].

Morgan’s advocacy has redirected focus toward empirical evidence, framing escrow releases as a stabilizing force rather than a threat. By highlighting the SEC’s recognition and market data, he aims to reorient scrutiny away from speculative claims. The ongoing discourse could influence how blockchain projects structure tokenomics, emphasizing the balance between controlled supply and investor trust.

Sources:

[1] [Is Ripple Manipulating XRP Price? Bill Morgan Debunks ...] [https://coinpedia.org/news/is-ripple-manipulating-xrp-price-bill-morgan-debunks-escrow-dump-theory/]

[2] [Ripple Lawyer Shuts Down XRP Escrow Dump Claims] [https://www.kryptovaultdaily.com/ripple-lawyer-shuts-down-xrp-escrow-dump-claims/]

[3] [Lawyer Debunks XRP Escrow Dump Rumors] [https://coingape.com/lawyer-debunks-xrp-escrow-dump-rumors/]

[4] [XRP Escrow Dump Theory Rejected by Lawyer as Market Defies Expectations] [https://moneycheck.com/]