XRP News Today: Ripple Escrow System Defended Amid Price Manipulation Claims

Generated by AI AgentCoin World
Tuesday, Jul 22, 2025 7:04 am ET1min read
XRP
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Aime RobotAime Summary

- Ripple’s XRP escrow system, releasing 1 billion tokens monthly, aims to manage supply and stabilize prices, per lawyer Bill Morgan.

- Critics claim escrow releases cause price drops, but Morgan argues released tokens are a small fraction of daily trading volume.

- XRP’s sharp price rise in late 2024-2025, during scheduled releases, contradicts manipulation claims and aligns with SEC-recognized stability goals.

- Morgan dismissed rumors of U.S. government seizing escrow, emphasizing its transparency and role in boosting investor confidence.

Ripple’s escrow release strategy has been a subject of debate, with some critics alleging that the company is manipulating the price of

XRP
through these releases. However, lawyer Bill Morgan has provided detailed rebuttals to these claims, asserting that the escrow system is designed for supply management and investor confidence rather than price manipulation.

Ripple introduced its XRP escrow system in 2017 to prevent market flooding and ensure long-term stability. A total of 55 billion XRP was locked up, with a monthly release of 1 billion XRP in two tranches of 500 million each. Out of these, only 200 to 350 million XRP are typically used for payments and ecosystem growth, with the rest returned to escrow. Morgan emphasized that even the SEC recognized the escrow system's intent to support XRP’s price, not deflate it, reinforcing Ripple’s actions as aimed at strengthening market confidence.

Critics have claimed that Ripple’s monthly escrow releases contribute to price dumps, but Morgan debunks this by pointing out that these released tokens represent only a small fraction of XRP’s daily trading volume. He also highlighted past events where XRP rallied sharply between November 2024 and February 2025, all months where scheduled escrow releases occurred. Morgan stated that the massive rise in XRP price dismisses the claim that escrow unlocks hurt market performance.

Rumors emerged in mid-2025 that the U.S. government could seize Ripple’s escrow for a national reserve. Morgan addressed these rumors, stating that such scenarios are legally and practically baseless. He clarified that the escrow release strategy is a transparent system built for supply management and investor confidence, and with XRP’s recent surge and regulatory support, critics of the escrow model are being silenced.

Morgan’s detailed rebuttals, backed by logic and real market data, provide investors with the clarity they need as XRP enters its next growth phase. The escrow system is not a price manipulation tool but a mechanism to stabilize XRP’s price, as acknowledged by the SEC. This clarification is crucial for investors as XRP continues to gain traction and regulatory support, paving the way for its next phase of growth.