Bitcoin price action remained steady even as XRP grabbed headlines on Jan. 1, when Ripple’s first scheduled escrow unlock of 2026 released a massive 1 billion XRP — alongside a misleading memo that briefly rattled the community.
According to blockchain data, the unlock happened right around midnight and was split across three transactions executed within seconds of each other. Despite the size of the release, XRP’s price volatility stayed relatively contained, suggesting traders were largely prepared for the event.
The 1 billion XRP was divided evenly. Two major wallets received a total of 500 million tokens, split into transfers of 300 million and 200 million XRP. The remaining 500 million tokens were allocated to Ripple itself. Both wallets now hold 1 billion XRP each, up from 500 million prior to the unlock, based on data tracked by market observers.
Importantly, none of the newly unlocked tokens have moved since the transactions were completed. Ripple has also not sent any XRP back into escrow as of publication. Since launching its escrow system in 2017, Ripple has followed a monthly release schedule and typically relocks unused tokens after assessing market conditions.
Trading activity picked up following the unlock, but price swings were modest compared to the sheer volume of XRP released, according to market data. That calm was briefly disrupted, however, by a controversial message attached to the transactions.
Each of the three escrow releases included a memo that many initially believed came directly from Ripple. The message claimed the company had sold large amounts of XRP in 2025 to fund acquisitions and hinted at even larger sales in 2026 to support expansion and stablecoin growth. Its sarcastic tone toward XRP holders quickly sparked backlash across social media.
Blockchain analysts and community members later confirmed the memo did not originate from Ripple. Under Ripple’s escrow system, any wallet can technically trigger a scheduled release once the unlock date arrives. The wallet that initiates the transaction also controls the memo field, even though Ripple is the designated recipient of the funds. This structure has been in place since the escrow system was introduced.
The episode exposed widespread misunderstandings about how Ripple’s escrow actually works. Many traders incorrectly assumed Ripple controls the timing of releases and authors all transaction messages. Community leaders and analysts issued clarifications soon after, stressing that transaction memos are not official communications.
Several prominent figures in the crypto space called for better education around escrow mechanics, while The Crypto Basic published explanations to help users distinguish between legitimate Ripple statements and unauthorized blockchain messages.
The unlock comes after a bearish period for XRP in late 2025, even as institutional adoption of Ripple’s technology reportedly increased. For now, both Bitcoin and XRP appear to be taking the event in stride — with markets showing more maturity than the confusion surrounding a single sarcastic memo might suggest.
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