Former Director Says Ripple Can Burn 40 Billion XRP In Escrow, How Will This Affect Price?
December 22 2023 - 1:00PM
NEWSBTC
The possibility of Ripple ‘burning’ its escrowed XRP funds has come
up for discussion. This development could become a major talking
point as the XRP community continues to clamor about XRP’s tepid
price action. Can Ripple Burn Its Escrowed XRP Funds? In a
post on his X (formerly Twitter) platform, former Ripple Director
Matt Hamilton suggested a way in which Ripple could potentially
‘burn’ its XRP holdings in escrow lockups. He stated that Ripple
could disable the master key on the destination account, which
usually receives these escrow funds. Related Reading: Solana
Headed To $100? Here’s What’s Driving The Growth Hamilton believes
that this achieves the same purpose for which tokens are burned,
considering that they become inaccessible to anyone when they are
released from escrow. His statement formed part of a larger
discussion among some members of the XRP community on what to do
with the escrowed funds if there was a need to get rid of
them. Crypto sleuth Mr. Huber had also weighed in on the
discussion as he stated that Ripple can’t burn these escrowed funds
as the decision isn’t theirs to make. Ripple will apparently need
the approval of validators on the XRP Ledger before they can make
such a move. From the discussion, one could see that they
were alluding to the escrowed funds possibly being encoded on the
XRP Ledger. As such, Ripple will need the permission of these
validators to alter the code and burn those funds. However,
Hamilton’s comment was more focused on Ripple burning these funds
by simply disabling access to the destination account. Bulls
maintain control of price | Source: XRPUSD on Tradingview.com
Ripple Burning Escrowed Funds And Its Significance Ripple burning
their escrowed funds is something that could easily pique the
interest of the XRP community. This is true, especially considering
recent talks about Ripple deliberately suppressing XRP’s price. As
such, there could be shouts for Ripple to burn some of these tokens
to show its commitment to XRP’s growth. Related Reading: Shiba Inu
Eyes $0.00002 As Shibarium Marks Momentous Milestone However, from
all indications, this isn’t a straightforward process, and there is
no guarantee that it will affect XRP’s price. At some point in the
discussion, XRP YouTuber Moon Lambo alluded to the fact that
Ripple’s XRP holdings aren’t part of those in the open market. It
has also been reported that Ripple’s XRP transactions do not impact
prices on crypto exchanges. Therefore, there is the
likelihood that Ripple burning their XRP holdings (the escrowed
funds in particular) might not impact XRP’s price on the open
market. Ripple probably knows this, and that is why they haven’t
made such a move. Instead, to provide stability to XRP, they return
most of their unlocked tokens to escrow. Featured image from
Watcher Guru, chart from Tradingview.com
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