© Reuters. Crypto Twitter trades in the fate of Ripple’s XRP Escrow account
- Ripple’s ongoing lawsuit against the SEC raises questions about the fate of its escrow account on XRP.
- The escrow account contains over 42 billion XRP, set to be issued at a pace of no more than 1 billion XRP per month.
- Users are debating on Twitter whether destroying the XRP escrow account will help Ripple’s case.
The intensifying legal battle between the US Securities and Exchange Commission (SEC) and prompted users on Twitter to question whether destroying or “burning” the blockchain company’s XRP escrow account, containing more than 42 billion XRP, would help advance its case and allow a faster resolution in the matter. suit.
The deliberations were prompted by a supplemental summary of the remedies the SEC filed in its lawsuit against cryptocurrency startup LBRY. The memo called for restrictions on LBRY conducting unregistered offerings of crypto-asset securities until existing holdings of its parent token destroy LBC. Destruction may include token burning, which is a well-known concept in the crypto space.
David Schwartz, Chief Technology Officer of Ripple, responded and discussed developments in the case of LBRY. A user asked Schwartz if the Ripple XRP escrow account would also have to be destroyed in order to reach a settlement with the securities regulator. However, Twitter users pointed out that it would not be possible for Ripple to burn the XRP collateral.
That is, Ripple could now publicly and possibly make the entire future collateral funds inaccessible even to themselves. For all intents and purposes “burn” it.
– Matt Hamilton (@HammerToe) May 14, 2023
Users on Twitter were confident that if necessary, Ripple could encourage network validators to start token burnings that would void the XRP escrow account, which held more than 42 billion XRP as of May 1, 2023. While destroying the escrow could facilitate In order for Ripple to reach a favorable settlement, most users agreed that burning would not be a simple procedure.
Ripple will either have to influence the auditors to comply with the judge’s ruling or send a release of 1 billion XRP per month to an address without keys. With no master key, the account would be rendered inoperable, and the tokens would be effectively burned because they would not be accessible to anyone.
Crypto Twitter post Deliberates Over the Fate of Ripple’s XRP Escrow first appeared in Coin Edition.