Ripple co-founder Jed McCaleb having sold more than $400 million worth of XRP over the last 12 months
It seems that after the SEC announced a lawsuit against Ripple for allegedly selling securities as XRP tokens, people were trying to liquidate their XRP holdings. In it, the CTO of Stellar and former Ripple founder, Jed McCaleb, made $ 411 million XRP in 2020. And presumably, McCaleb will continue to sell more XRP soon. This action can have a negative impact on the XRP price.
Ripple co-founder Jed McCaleb sold more than $ 400 million worth of XRP over the last 12 months
McCaleb sold 1.2 billion XRP throughout the year for an average price of $ 0.34. As such, he has earned nearly half a billion dollars. According to the report, this total represents 27% of McCaleb’s XRP stock held in a payment account with Ripple Labs and marks a strong acceleration in his sales to date. He sold about a billion XRP over the five years from 2014 to 2019.
According to Whale Alert estimates, McCaleb’s total current and liquidated XRP holdings are around $ 1.2 billion, placing him high on the crypto wealth list.
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— Whale Alert (@whale_alert) December 29, 2020
McCaleb left Ripple back in 2013 owing to certain disagreements on how Ripple functions, and as a settlement Ripple promised him a total of 8 billion XRP which would be paid in parts to avoid any possibility of massive dumping on the market. McCaleb has earned in total $1.2 billion in profits and XRP tokens in the settlement deal.
Ripple end up withdrawing 1.3 billion in total at the start of 2021 instead of the usual 1 billion. The timing of the payout to its cofounder also raised eyebrows given the circumstances Ripple is currently in.
On January 1, 2020, McCaleb received 477.7 million XRP from his payment account with Ripple Labs. McCaleb’s related wallet still holds 652.1 million XRP – worth about $ 147 million at current prices.
In McCaleb’s initial report on XRP sales in February, Whale Alert warned of the potential risks associated with a single entity having such a significant economic impact on a project they no longer participate:
“Whether or not you believe the future is bright for blockchains like Ripple, the economic power and consequences of whales like Jed McCaleb cannot be ignored…”
Ripple currently holds 6,365,030,048 XRP and it has distributed 45,425,790,652 XRP while 48,200,000,013 XRP is locked up in the escrow. The crypto company claims to use the XRP funds it holds for a range of operation maintenance cost, and to sell it to investors.
XRP which has remained inactive for most of three years finally recorded massive rallies towards the end of November seeing its price climb up to $0.90, however it has lost all those gains and more due to the lawsuit and mass delisting across major exchanges.
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