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Ripple has received widespread criticisms for its unusual token unlocks at the start of every month. Yet again, the company has continued in that tradition to release another 1 billion XRP from its escrow wallet as we enter the month of May
The transfer was made in 3 different transactions of 100M, 400M, and 500M XRP, according to a tweet from Whale Alert.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 500,000,000 #XRP (107,272,434 USD) transferred from Ripple Escrow wallet to Ripple
— Whale Alert (@whale_alert) May 1, 2020
Ripple Co-founder also received XRP settlement
It is uncertain why Ripple releases several millions of dollars at the start of every month. The 1 billion ZRP released this month is valued at $220 million at current market prices. Apart from the token unlocks, Jed McCaleb, Ripple’s co-founder, was given his batch of XRP.
As part of his settlement, he was given 55 million XRP on May 1, the same day Ripple made the 1 billion XRP token unlocks.
From a previous report, at the beginning of last month, McCaleb received 63 million XRP from Ripples. Presently, he is reportedly in possession of more than 4.7 billion XRP, which makes him one of the wealthiest persons in the world of cryptocurrency.
No one is sure if this was an agreement he and the company made before leaving it, as many have counted him “exceptionally lucky” to be a beneficiary of such huge monthly payments.
Business goes on normal for Ripple
Ripple has often received criticism for the release of tokens at the start of every month. Each month, the released tokens are valued at hundreds of millions of dollars. To make things more confusing, Ripple has never really explained the purpose or reason for following this tradition every month.
As a result, many observers are accusing the crypto company of dumping its holdings into the market, similar to the PLUS Token scam.
Some major exchanges have equally frowned at the business module and activities of Ripple, with Arthur Hayes, BitMEX Chief Executive Officer, particularly vocal about it.
Ripple is constantly in the news lately
It seems Ripple has managed to stay in the news lately, not only for the escrow wallet criticisms. Last month, Ripple (find out how to buy Ripple here) was in the limelight again when it filed a high-profile lawsuit against video streaming giant YouTube.
The crypto company accused YouTube of using its channel to promote XRP-related scams. It was alleged that some livestreams on YouTube were stealing funds by misrepresenting Ripple sponsorships. However, YouTube has kept quiet about the lawsuit and has not responded yet
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