- 5% of total existing XRP supply is still left with Jed McCaleb, founder of Ripple, Stellar & Mt. Gox
- Arthur Britto also holds billions of XRP in escrow that are to expire in the future
Whale Alert that monitors blockchains has taken to analyze XRP whale, Jed McCaleb. Founder of Mt. Gox, Ripple, and Stellar, McCaleb is one of the most famous whales of crypto space that has been a matter of concern for XRP investors because of the 9 billion XRP tokens he claimed to have received as part of his compensation for his role at Ripple.
A significant portion of his assets has been sent to Ripple for unknown reasons. Former Ripple CTO has also donated at least 140 million XRP to various charities.
In its latest study, Whale Alert tracked around 8 billion XRP to Ripple, a settlement account and his personal accounts from here McCaleb actively sells. In May 2014, when he first shared his intent to sell XRP, McCaleb’s holdings were worth about $45 million.
They managed to track the sales of 1.05 billion XRP, “almost exclusively through Bitstamp,” between 2014 and 2019 at an average price of 0.129 cents, putting the total sale amount at $135 million USD. McCaleb continues to sell, even last month he sold another 19 million XRP.
The profits have also been cashed out directly through Biststamp with no evidence of it being reinvested into the crypto market.
At present, 4.7 billion XRP which is around 5% of total existing XRP supply is still left with McCaleb, worth over a billion dollars, estimates Whale Alert.
“At the current rate it would take him around 20 years to sell all of it, however his activities have been limited by the settlement agreement with Ripple, which is likely to expire sometime in 2020.”
Insignificant amount but economic power can’t be ignored
The big question is does McCaleb selling XRP affects the price of the third largest digital asset by market cap. Whale Alert found that compared to XRP’s total trading volume per day, the amount his selling is “insignificant.”
But volume is not a good indicator for how much the market can absorb, as it explains, “It’s likely that a very significant part (if not most) of the volume on exchanges comes from comparable traders and that the net change of XRP on the market is much lower.”
The real question is how much effect does this whale have on the net amount of XRP available. Though there is not enough data, “because he is exclusively selling XRP, he is adding to the net amount available,” wrote Whale Alert.
While McCaleb has 4.7 billion of XRP left to be dumped on the market, Ripple co-founder Arthur Britto also holds billions of XRP in escrow that will expire in the future as well.
The significance of a large amount of sale on XRP’s sale might not be big but the “economic power and consequences of whales cannot be ignored,” concludes Whale Alert.