Ripple Co-Founder Unlocks 63.7 Million XRP From Settlement Wallet
Guess who’s at it again moving the latest part of his Ripple settlement? Co-Founder Jed McCaleb just transferred 63,704,590 XRP ($12,293,769) to his personal wallet. XRP holders brace for the possible incoming dump.
Former Ripple Founder’s Massive XRP Transfer
Late last night, Whale Alert flagged up the gigantic XRP transfer from Jed McCaleb Settlement to Jed McCaleb’s wallet. More than $12mn worth of XRP could be getting ready to be dumped on the market.
🚨 63,704,590 #XRP (12,293,769 USD) transferred from Jed McCaleb Settlement to Jed McCaleb wallet
— Whale Alert (@whale_alert) April 7, 2020
The crypto transactions tracker also added that this transfer was just part of the settlement between McCaleb and Ripple:
From his account Tacostand the #XRP periodically gets sent to the account rLkM…Q1A where it is being sold
ℹ️ This transfer is part of the settlement between Ripple and Jed McCaleb. From his account Tacostand the #XRP periodically gets sent to the account rLkM…Q1A where it is being sold. https://t.co/je2py8Ntc4
— Whale Alert (@whale_alert) April 8, 2020
Just when Ripple’s token looked to be recovering and the company announced a new exchange listing, XRP holders are once again faced with the continued problem of Ripple’s over-supply and Jed McCaleb dumping on them.
The tweet alert was unsurprisingly met with the usual fury of holders and disdain from XRP opponents. The consensus was pretty much the same, however, summing it up in two words:
Crypto’s Best-Known Whale?
McCaleb joined Ripple in 2014 and was the main mastermind behind the creation of its XRP token. But he later left the company to start Stellar and agreed upon a significant settlement of XRP to be paid out over time.
As pointed out by Whale Alert, this is then usually sold on the open market to the frustration of XRP holders. By the conditions of the contract, however, McCaleb may only sell a certain amount and is obliged to do so with caution liquidating at average market prices. So, does his continued selling of tokens affect the price of XRP?
According to a blog post by Whale Alert:
Compared to the total trade volume per day, the amount he is selling seems insignificant. For instance, from the 1st to the 7th of June 2017, he sold a total of 2.5 million XRP for $741,000 USD. The total trade volume that week for the XRP/USD pair on Bitstamp alone was 127 million XRP, but volume is not a good indicator for how much the market can absorb.
The post goes on to say that there is not enough data to confirm whether his regular dumping has an effect on the price. However, since he is exclusively selling XRP:
He is adding to the net amount available. It is also important to note that it seems that the profits are being cashed out directly through Bitstamp and we found no evidence that any of it is being reinvested into the crypto market.
Do you think Jed McCaleb will dump his latest tranche of XRP tokens? Add your thoughts below!
Images via Shutterstock, Twitter @Whale_Alert