Lawyer Bill Morgan debunks XRP escrow dump theory, claiming Ripple’s escrow system has supported XRP’s price growth.
The debate has taken a significant turn as attorney Bill Morgan thoroughly disproves the XRP escrow dump theory and exposes Ripple’s token management approach.
Morgan clarifies the true story as detractors attack Ripple’s escrow system.
Morgan’s arguments deal a fatal blow to the idea, since the SEC acknowledges that the escrow was created to sustain the price of XRP.
Lawyer Explains XRP Escrow Mechanism Of Ripple
Once more, the XRP escrow dump idea is being questioned, with some claiming that Ripple purposefully lowered the token’s value.
Bill Morgan, an XRP attorney, responds that Ripple is dedicated to bolstering the XRP ecosystem using its escrow management approach.
Morgan added that the SEC has acknowledged Ripple’s true motivation to support his claim.
“Even the SEC recognized that the escrow was intended to buttress the price of XRP, not deflate it,” he wrote in his X post.
Morgan pointed out that one of the elements that would cause investors to anticipate gains from Ripple’s endeavors was the escrow system, which the SEC had considered.
He continued by saying that this was only one of several arguments he has used in the past to refute the escrow dump theory.
Remarkably, this response follows Ripple’s July escrow release.
In two tranches of 500 million tokens each, Ripple unlocked 1 billion tokens, according to CoinGape.
Despite Rise In XRP Price, Ripple Is Criticized
Notably, even though the token’s price rose from the initial $0.5 to over $3, Ripple continues to be criticized for its XRP escrow mechanism.
Critics contend that Ripple’s monthly escrow releases are purposefully planned for the price dump despite the market’s upbeat outlook.
Morgan clarified the misunderstanding in February 2025 by emphasizing that the monthly XRP releases only make up a minor portion of the daily trading volume.
Furthermore, the percentage of tokens kept in escrow decreases as the overall quantity of XRP increases.
He said that the token’s price is unaffected by this action.
Notably, the lawyer’s initial argument was that the XRP escrow dump theory is essentially unrelated to the actual functioning of the coin.
He noted that the asset’s price has increased despite continuous XRP releases from escrow, indicating that other variables will be in charge of any future price drops.
His X post said,
What is there to say about the discredited escrow dump theory that has not already been said. If it needed a coup de grace to send it to its final resting place, it was the massive rise in XRP price from $0.50 to over $3.00 despite further releases of XRP by Ripple from escrow in November, December 2024 and January 2025.
Morgan also refuted reports in June that the US government may take the national reserve’s escrow.
He vehemently denied rumors that the government was planning anything, saying, “No, it won’t.”
What Is XRP Escrow On Ripple?
To maintain market stability and avoid token oversaturation, Ripple implemented its escrow system in 2017 and locked away 55 billion XRP.
Only a portion of the 1 billion tokens the platform will produce monthly—usually between 200 and 350 million—are used to support its ecosystem projects and payment services.
Notably, returning unused tokens to escrow maintains a careful balance between supply and demand.
According to reports, this approach seeks to reduce downward pricing pressure while supplying enough liquidity for real-world uses.