Its XRP burns its hands – One of the main problems with XRP is that Ripple Labs and its founders hold astronomical amounts of it. This has become all the more problematic since Jed McCaleb, former founder of Ripple, decided to get rid of his tokens as quickly as possible.
Billions of XRP to spare
In July 2013, Jed McCaleb definitively slammed the door of Ripple (then called OpenCoin ), of which he was however one of the main initiators.
Since then, although he has moved on to his new cryptocurrency project – Stellar (XLM), launched in 2014 – Jed McCaleb has nonetheless retained a large indirect influence on Ripple’s XRP .
Indeed, when he left his previous project, due to differing views, he took away no less than 9.5 billion XRP , or 9.5% of all existing XRP .
After a lengthy legal battle that ended in February 2016, Ripple Labs and Jed McCaled managed to come to an agreement on how to liquidate their XRP which, from the start, expressed a desire to resell them.
The amount of XRP that the former founder of Ripple can resell depends on the global trading volumes of this interbank token. And as these volumes have increased … guess what!
Jed McCaleb steps up XRP liquidation
Stellar’s current CTO can resell up to 1.5% of the global XRP trading volume every day . If this represented “only” 2 million XRP per day last May, the pace has accelerated sharply in recent days.
As anyone can see from Jed McCaleb’s XRP address (thanks to the blockchain transparency ), his liquidation saw a first sharp increase since late last month. Eh yes ! Since November 29, our friend has gone from less than 4 million XRP resold every day to over 9.9 million XRP , or almost $ 6 million.
But since December 6 , the “dump machine” has been racing again . Jed McCaleb has effectively disposed of over 29.57 million XRP in each of the past 2 days , or around $ 35.5 million in tokens resold within 24 hours.
Knowing that there are still nearly 3.7 billion XRP to get rid of, it may end up hurting a lot at this rate, even through OTC transactions (over-the-counter) which nevertheless influence a lot. minus the prices compared to trading on crypto exchanges.