TLDR
- Ripple’s XRP escrow mechanism continues to face criticism despite consistent token price growth.
- Lawyer Bill Morgan has rejected claims that Ripple’s monthly XRP releases are designed to depress the token’s value.
- Morgan stated that the SEC acknowledged Ripple’s escrow strategy as a method to support XRP’s price, not harm it.
- The unused portion of XRP released from escrow is returned each month, helping maintain supply balance.
- Despite regular releases, XRP’s price rose from $0.50 to over $3, challenging the escrow dump theory.
Ripple’s XRP escrow system is under renewed criticism as accusations suggest intentional price manipulation. However, legal expert Bill Morgan has firmly rejected these allegations, defending Ripple’s ongoing strategy. He points to recent price trends and regulatory context as strong evidence against claims of market suppression.
Ripple’s XRP Escrow Management Faces New Allegations
Ripple continues releasing XRP tokens monthly through its escrow system, sparking ongoing claims about market price suppression. Critics argue the regular token release creates downward pressure, triggering artificial dumps. Yet, data from recent months indicates the token’s value has significantly increased during scheduled escrow releases.
Morgan states the accusations fail to consider the system’s long-term purpose. The XRP escrow mechanism launched in 2017, locking up 55 billion XRP to support stability. Each month, Ripple releases up to 1 billion XRP, using only a fraction and returning the rest.
The unused XRP consistently returns to escrow, which maintains a balanced supply approach. This method has ensured liquidity for ecosystem development without overwhelming the market. Morgan emphasizes the released XRP is often far less than total market volume.
SEC Recognition Undermines Dump Theory
Bill Morgan highlights that even the U.S. Securities and Exchange Commission acknowledged that the XRP escrow structure supports rather than harms XRP’s value. He explains that the escrow helps create investor confidence and reinforces expectations for long-term growth. Morgan argues that this directly contradicts any claims of Ripple attempting to deflate XRP’s price.
In recent posts, he stated that the purpose of escrows is to contribute to price stability, not volatility. This aligns with the SEC’s past filings, which included observations about Ripple’s efforts to enhance price expectations. Morgan insists the dump theory loses credibility when official findings support Ripple’s strategic intent.
What is there to say about the discredited escrow dump theory that has not already been said. If it needed a coup de grace to send it to its final resting place, it was the massive rise in XRP price from $0.50 to over $3.00 despite further releases of XRP by Ripple from escrow in… https://t.co/cqTcjR4k2N
— bill morgan (@Belisarius2020) February 27, 2025
Furthermore, he points out that Ripple has remained transparent about its token allocations. Market watchers can monitor each escrow release and distribution report. Such openness, he claims, reinforces Ripple’s focus on sustainable XRP growth, not manipulation.
Ripple also uses XRP to enhance its payment services and fund ecosystem expansion. The amount released monthly often represents a small fraction of daily XRP trading volume. Thus, Morgan concludes that the escrow does not significantly affect price trends.
XRP Price Gains Challenge Controversy
Despite continued XRP escrow releases, XRP price surged from under $0.50 to over $3 in recent months. Morgan referenced these price gains as evidence that the escrow releases do not cause market dumps. He noted the November, December, and January releases had no negative price impact.
This increase suggests other market forces are more influential in determining value. Morgan believes focusing only on escrow ignores broader market dynamics. He also reminds critics that Ripple returns unused tokens monthly, preserving the long-term supply cap.
Critics continue targeting the escrow strategy, especially after each release. However, Morgan has maintained that such theories remain unsupported by actual performance data. He reiterated that the system strengthens, rather than weakens, investor sentiment in the long term.
