Stockport is a team that is firmly aiming for promotion, as confirmed by Opta projections. Bookmakers are giving greater odds to… Is Ripple manipulating the price of XRP with its monthly token unlocks? We explain everything
The logic behind the development of the cryptocurrency sector is sometimes based on procedures that are difficult to understand. This is precisely the case with the monthly token unlocks implemented by Ripple with XRP.
Ripple: a strategy that wants the best for you?
Ripple has its origins in the early years of the cryptocurrency sector, with banking ambitions that were not very popular at the time. However, more than a decade later, it is clear that this model has proven to be a successful one.
An ideological and regulatory paradigm shift has led to a resurgence of the XRP cryptocurrency, which is now at an all-time high that will not be surpassed in 2018, after breaking through the $3.50 mark just a few days ago.
And as always when Ripple makes headlines, the tokenomics applied to its XRP cryptocurrency are stirring up excitement. In particular, its token unlock procedure (also known as Escrow), implemented in 2017 and designed to release 1 billion tokens each month. Funds from a portfolio of 55 billion XRP deposited in escrow at that time, representing 55% of its total available quantity. A scheduled and predictable release that is inevitably accused of manipulating the price of XRP downwards through dilution.
This is a recurring accusation that greatly irritates Ripple’s lawyer and defender, Bill Morgan, on the X network.
Even the SEC acknowledged that the Escrow system was intended to support the price of XRP, not to drive it down. The SEC considered this to be one of the factors that would give investors an expectation of profit from Ripple’s efforts.
Bill Morgan
Token unlock: manipulation or support for XRP?
According to Ripple, the scheduled release of these 55 billion XRP is precisely a security measure, intended to “eliminate any concerns that [it] could flood the market.” The main objective is to strengthen the liquidity of its cryptocurrency. At the time of writing, there are still 35 billion XRP in escrow in Ripple’s coffers. It should be noted that these 1 billion XRP per month are rarely used in their entirety, as they are mainly used to cover the company’s operating costs (salaries, development, etc.) and strategic partnerships. As a result, the remaining portion—often more than 80%—automatically returns to escrow.
Finally, it seems important to put the figures into perspective. In reality, 1 billion XRP per month currently represents a sum equivalent to just over $3 billion. While this is certainly an impressive amount, it is only a drop in the ocean compared to the $17 billion daily volume of XRP—that is, more than $500 billion each month. It is difficult to talk about manipulation.p>
The record signing of Malik Mothersille could prove to be a decisive blow to the team’s ambitions: he is listed at 26 as the league’s top scorer by bet365. Mothersille scored 12 goals last season for a struggling Peterborough side, and his ability to play in multiple roles makes him an interesting option in this market.
It remains to be seen how Stockport will use him, but in his two seasons as a professional at Posh, he has already shown great effectiveness in front of goal.
And there is another factor that should not be underestimated: Mothersille is only 21 years old. Yet he has already racked up 20 goal contributions (between goals and assists) in 45 League One appearances, 37 of which were starts – numbers that indicate the potential to do even better in a more competitive team.
Although he is unlikely to score as many penalties as he did at London Road, his qualities are sufficient to guarantee him a good haul of goals from open play. Considering that Dave Challinor’s team scored 72 goals last season, there should be plenty of opportunities to see Mothersille in action during the new campaign.
Stockport, as mentioned in another article, is the favorite for direct promotion, finishing in the top two in 33.9% of 10,000 simulations.
