- Lawyer Bill Morgan says XRP escrow supports price stability, not suppression.
- Ripple’s 1B monthly XRP release has been a predictable “non-event” for years.
- The SEC lawsuit evidence backs escrow as a pro-market, not anti-market, tool.
Lawyer Bill Morgan has defended Ripple’s XRP escrow system by referencing CEO Brad Garlinghouse’s August 2017 explanation of its benefits for supply predictability and market trust. Morgan’s comments address ongoing criticism about monthly escrow releases. He stressed that the mechanism was designed to support rather than suppress XRP prices.
The debate originated when analyst CrediBULL Crypto posted analysis suggesting XRP might outperform Ethereum after meeting downside targets. An X user questioned Ripple’s monthly release of 1 billion XRP from escrow. This prompted CrediBULL to explain that these releases have occurred regularly for years as a “non-event.”
SEC Lawsuit Evidence Contradicts Suppression Claims
Morgan pointed to the SEC vs. Ripple lawsuit evidence where regulators described the escrow as one of several measures Ripple implemented to support XRP prices rather than suppress them. The court documentation contradicts common criticisms that escrow releases create downward pressure on XRP valuation.
The lawyer suggested that continued escrow criticism comes from individuals either hostile to XRP and the XRP Ledger or being deliberately obtuse about the mechanism’s purpose. Eight years after Garlinghouse’s initial explanation, Morgan maintains that the escrow provides compelling benefits for market stability.
Garlinghouse’s 2017 announcement celebrated placing 55 billion XRP in escrow and described it as positive for supply predictability and creating trusted, healthy XRP markets. The CEO mentioned the move as releasing the “cryptokitty out of the bag.”
Regular Release Schedule Maintains Market Predictability
CrediBULL Crypto emphasized that monthly escrow releases follow a predictable schedule that market participants have understood for years. The analyst advised critics to research the topic rather than treating routine releases as price-moving events.
The escrow mechanism releases up to 1 billion XRP monthly, with unused tokens returned to escrow for future release. This structure provides supply predictability while allowing Ripple to access tokens for business operations and market-making activities.
Morgan’s defense highlights the disconnect between escrow critics and actual market evidence about the mechanism’s impact. Despite monthly releases continuing for years, XRP has maintained its position among the top cryptocurrencies by market capitalization.
CrediBULL’s original analysis examined the XRP/ETH trading pair performance and suggested potential for XRP’s outperformance. The technical analysis approach contrasts with fundamental concerns about escrow releases.
Related: ZachXBT Explains Why Ripple Faces User Distrust Despite Recent Legal Wins
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