Ripple’s escrow release strategy is not a price manipulation tool but a transparent system built for supply management and investor confidence. With XRP’s recent surge and regulatory support, critics of the escrow model are being silenced. Bill Morgan’s detailed rebuttals, backed by logic and real market data, provide investors with the clarity they need as XRP enters its next growth phase.
What Is Ripple’s Escrow System?
Ripple introduced its XRP escrow system in 2017 to avoid flooding the market and to ensure long-term stability. A total of 55 billion XRP was locked up, with a monthly release of 1 billion XRP in two tranches of 500 million each, as seen again in July 2025.
Out of these, only 200 to 350 million XRP are typically used for payments and ecosystem growth. The rest? Sent back to escrow.
Morgan explained on X, “Even the SEC recognised that the escrow was intended to buttress the price of XRP, not deflate it, “ reinforcing the argument that Ripple’s actions are aimed at strengthening market confidence.
Why Critics Claim Escrow Releases Hurt XRP’s Price
Despite XRP’s explosive growth from $0.50 to $3 — a 600% surge — some critics claim Ripple’s monthly escrow releases contribute to price dumps. But Morgan debunks this, pointing out that these released tokens represent only a small fraction of XRP’s daily trading volume.
He also highlighted past events to support his point. XRP rallied sharply between November 2024 and February 2025 — all months where scheduled escrow releases occurred.
“If it needed a coup de grace to send it to its final resting place, it was the massive rise in XRP price,” Morgan stated, dismissing the claim that escrow unlocks hurt market performance.
Addressing Escrow Seizure Rumors
Rumors also emerged in mid-2025 that the U.S. government could seize Ripple’s escrow for a so-called national reserve. Morgan tackled these head-on, stating firmly in June: “No, it won’t.” His comment clarified that such scenarios are legally and practically baseless.
Ripple’s escrow release strategy is not a price manipulation tool but a transparent system built for supply management and investor confidence. With XRP’s recent surge and regulatory support, critics of the escrow model are being silenced.
Bill Morgan’s detailed rebuttals, backed by logic and real market data, provide investors with the clarity they need as XRP enters its next growth phase.
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