Ripple moves 100 million XRP to co-founder Jed McCaleb
Ripple moved 100 million XRP, worth USD 26.3 million, into the portfolio of Jed McCaleb one of the founders of Ripple and Stellar, as well as the late crypt coin exchange Mt. Gox.
The new fortune adds to the 9 billion XRP McCaleb received to start Ripple. McCaleb, who has since left the company, has a history of massive XRP sales. In a market that struggles to keep its price afloat after a series of other rollovers, McCaleb could make things much worse.
McCaleb is a bit like Satoshi Nakamoto: A founder who accumulated large amounts of a cryptocurrency that later became viral. Nakamoto-san has so far remained anonymous, and his funds pile up in a wallet. However, an immediate sale could be catastrophic for Bitcoin. McCaleb, on the other hand, has made massive sales of its coins, and the XRP market has crashed.
McCaleb signed an agreement in 2014 with Ripple to limit the amount it could sell: $520,000 in XRP per year. However, those limitations have since disappeared, and the agreement now gives McCaleb the right to sell 750 million XRP this year. As a result, McCaleb now sells 500,000 XRP each day, according to Coinmetrics.com.
McCaleb's sales certainly don't help keep XRP's price afloat. While other cryptocurrencies, such as bitcoin and ether, skyrocketed in value this year, XRP's market capitalization has plummeted to $10.8 billion, less than a tenth of its historic high.
McCaleb's 9 billion XRP was worth USD 32.85 billion during the bull market in 2017, but since then XRP has fallen to levels before the bull run. The current price of XRP is only 0.25 cents, which means that McCaleb's 9 billion XRP would be worth only USD 2.25 billion.
Jed McCaleb also created the Mt. Gox crypt coin exchange in 2011 but sold it the same year. Three years later, it collapsed when it lost $473 million to hackers. The victims of the attack are still waiting for their money back.
If McCaleb gets rid of all his money on XRP, Ripple could be the latest addition to McCaleb's list of companies that crumbled after he left.
About The Author
Juan AponteI am an industrial engineer specializing in blockchain. Enthusiast of cryptocurrencies and writing the latest news regarding the Crypto world.
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