Research from WhaleAlert finds that Jed McCaleb, the co-founder of Ripple is selling around 1.74 million XRP on an average daily.
A Brief History
A tiff between early founders of XRP and Ripple based on ideologies and the future of Ripple, Jed McCaleb parted ways with Chris Larsen. He then found Stellar Lumens (STR), now transformed to Stellar (XLM) to service the financial industry with blockchain-based cryptocurrency.
Nevertheless, before he gave up his controls and shares, there was a brief legal war between the McCaleb and Ripple Inc. Finally in the settlement, McCaleb gave up his stake in Ripple in exchange for 5.3 billion XRP owned by him and his children. He also conditioned a 2 billion XRP donation to an as-yet-undisclosed charitable fund.
The report from WhaleAlerts attempts to determine the rate at which McCaleb is dumping his XRP on the market. This is in addition to the Ripple Escrow releases every month.
Sell Pressure on XRP
According to the report, in 2020 until today, McCaleb has unloaded $75 million worth XRP and still continues to hold over $4 billion more. In total, the designated supply of XRP is just short of 100 billion, with 44.862 billion in circulation.
The same is expected to continue throughout the year with a net sell-off of 630 million XRP (375 million XRP have been sold until now). Moreover, from 2014 to now he has already made up to $210 million by the sale of XRP.
As reported earlier on CoinGape, Ripple had escrowed the 55 million XRP supply to be unlocked on a monthly basis. According to the estimation, every month about 214.3 million (in total 3 billion XRP) has been liquidated on the market until now. At the current average rate for 2020, it amounts to around $2.14 million daily.
Furthermore, the company has put the condition to unlock up to 1 billion XRP per month, sell in the market based on its necessities and the market.
Do you think that the buyers will be able to absorb the total amount of the sell-offs? Please share your views with us.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com