Legal expert Bill Morgan has sharply rebutted the myth that Ripple's escrow is used to harm XRP prices by dumping tokens on retail investors.
Ripple’s Escrow: Then and Now
Morgan began his commentary by showcasing historical data on Ripple's escrow holdings. In late 2017, Ripple locked 55 billion XRP in escrow for predictable market release, decreasing to 35 billion by mid-2025, illustrating adherence to a monthly release policy.
SEC’s Recognition of Escrow’s Price-Stabilizing Intent
According to Morgan, the SEC explicitly acknowledged during litigation with Ripple that the purpose of the XRP escrow was to support, not depress, token prices. This recognition is integral to his argument against the escrow dump theory.
Transparent Distribution, Not Market Dumping
Ripple's 2017 escrow system involved a smart contract locking up 55 billion XRP, releasing 1 billion monthly. Morgan highlights Ripple's transparency in reporting its holdings and sales, primarily directed to institutional clients via its On-Demand Liquidity platform rather than retail channels.
Morgan asserts that the escrow dump theory lacks legal or regulatory support, emphasizing that Ripple’s escrow mechanism is among the most transparent distribution systems in the industry.
