Recently, Ripple announced a strategic lock-up of 500 million XRP, which has attracted widespread attention in the market. What does this number signify? Why did Ripple choose to make such a decision at this particular time?

On the surface, 500 million XRP accounts for approximately 13% of the total circulating supply of XRP. This move sends a strong confidence signal to the market. By directly locking such a large amount of tokens in a vault and temporarily freezing liquidity, the company demonstrates its confidence in the long-term prospects of XRP.

However, the underlying logic is worth deeper analysis. First, from a strategic perspective—given that the lawsuit between Ripple and the SEC in the U.S. courts has not yet been fully resolved—Ripple’s actions serve as a tangible demonstration that the company is serious about building the XRP ecosystem, which could positively influence regulatory progress.

Second, from a market psychology standpoint, during the lock-up period, XRP cannot be sold, which may lead to a short-term decrease in liquidity, potentially causing supply shortages and impacting price volatility. Historical data shows that after similar lock-up events, XRP often experiences a rise followed by a decline, so investors should be cautious about short-term price reactions.

It is also important to note that this 500 million XRP will be released in 21 batches, and the actual impact will depend on the release pace and market sentiment. A more critical risk point is that if the lawsuit results are unfavorable to Ripple, this lock-up could face significant uncertainties.

Therefore, the question boils down to: Is Ripple genuinely optimistic about the long-term value of XRP, or is it preemptively preparing for potential adverse scenarios? The market needs more time to verify the answer.