The third-largest cryptocurrency is back in the red, in line with the broad crypto market. In the past 24 hours, XRP lost 9.43% of its value, currently trading at $0.218. In the past month, the digital asset has lost nearly 22% of its value but is still up 18% in 2020 so far.
Interestingly, after bitcoin’s over 7% losses, XRP recorded the least percentage of losses among the top ten cryptocurrencies while EOS is down 14.52%.
These losses came amidst the transfer of over 41.2 million XRP worth about $10 million was from former Ripple CTO Jed McCaleb’s Settlement to Jed McCaleb’s wallet.
41,242,351 #XRP (9,940,773 USD) transferred from Jed McCaleb Settlement to Jed McCaleb wallet
— Whale Alert (@whale_alert) March 6, 2020
This much amount of XRP is expected to hit the market soon and when it does, it would put additional selling pressure on the crypto asset’s price which is already in the red.
As we reported earlier last month, Ripple co-founder selling his XRP is “insignificant” compared to the total trading volume of the digital asset per day.
McCaleb also sold a portion of his 19 million XRP in January but the price still surged over 27%. In total, he has sold 1.05 billion between 2014 and 2019, out of the 9 billion he received as part of his compensation for his role in Ripple.
Apart from co-founding Ripple, McCaleb also founded the infamous Mt. Gox but left it before the exchange went down. He has also created another cryptocurrency Stellar Lumens (XLM), currently ranked at 14th place trading at $0.0521, down 13.59% in the last 24 hours.
McCaleb still has about 5% of the total existing supply left to be dumped on the market. Overall, this XRP whale doesn’t appear to have much of an impact on the XRP price, although the “economic power and consequences of whales cannot be ignored.”
No mechanism to prevent XRP from being created by a bug
Elsewhere, current Ripple CTO David Schwartz shared that there is no freezing of other people’s XRP, on the question of if XRP can be frozen or locked out. He further elaborated on what could cause XRP to be created or destroyed.
“There's no mechanism in the software to create XRP and safeties to prevent it from being created by a bug or trick. There's no freeze or lock for other people's XRP since nobody would be entitled to that capability. You can easily lock or destroy your own XRP if you wish,” said Schwartz.
Schwartz further clarified that the validators can’t burn the XRP in your wallet either as servers count the number of validators that agree with it and such validators would be simply counted as disagreeing, “potentially halting the network if too many of them did this.”
And if they change the rules, that would effectively be a hard fork.