Ripple is facing new kinds of complications amid its ongoing legal battle with the US Securities and Exchange Commission (SEC). In the latest confusion, the blockchain firm got questioned about its unusual escrow transfer and that too before the scheduled time. However, this move might have added more selling pressure over XRP.
An issue in XRPL?
In a post, Vet, a prominent XRP Ledger (XRPL) dUNL Validator, addressed questions surrounding the Ripple Escrow unlock on the XRPL. The unlock featured 400 million XRP tokens (approx worth $217.5 million) that occurred on February 25 sparking curiosity within the community. This usual transaction was deviated from the typical schedule.
Vet stated that the XRP Ledger (XRPL) Escrow in question possesses several key properties. This includes the XRP value (Amount), the destination XRP account address, and the timestamp of unlock (FinishAfter). He added that this counts seconds since the Ripple Epoch on January 1, 2000.
As per the validators, the FinishAfter timestamp was set to February 1, 2024. This move allowed anyone to execute the Escrow when the condition is met. It’s important to note that completing the Escrow transaction doesn’t mean acquiring the XRP, as the destination is set to Ripple’s account.
He mentioned that anyone can verify and validate the state of the ledger, as the rules are public, and the Escrow can be finished if the conditions are met. Vet added to the intrigue and stated that the EscrowFinish is a transaction and it means you can put a funny memo into it, which the person did.
Some big error?
However, this unexpected unlocking of 400 million XRP tokens has brought fresh uncertainty to Ripple’s trouble. The release deviating from the usual schedule raises questions about its potential impact on the circulating supply and its price.
According to reports, Ripple initially unlocked 600 million XRP on February 1 through two transactions. One transaction was for 100 million XRP and another for 500 million XRP. However, the third transaction aimed at completing the scheduled one billion XRP release failed.
The failure was attributed to a transaction error referencing a non-existent PayChannel ledger object and suggested the possibility of a prior execution through another EscrowFinish transaction. In this situation, it becomes crucial to see that despite the unexpected volume release, Ripple returned 800 million XRP back into escrow on February 2.
On the market side, XRP is still trailing and printing red indexes. XRP price is down by over 17% in the last 60 days.
