- XRP Whale and former Ripple CTO argues his huge sell offs
- Not possible to sell off over 2% of the total supply without influencing the price, counters analyst
As we reported, an analysis by Whale Alert stated that the amount of XRP Jed McCaleb, co-founder and former CTO of Ripple and an XRP Whale is selling is “insignificant” compared to the digital asset’s total trading volume per day. Whale Alert wrote,
“because he is exclusively selling XRP, he is adding to the net amount available.”
Now, McCaleb who also co-founded Stellar Lumens (XLM) and Mt. Gox exchange has taken to point just this out that “date shows there is no impact on the market, and I don’t see any reason why that will change.” While speaking with CoinTelegraph, McCaleb said,
“I have been transparent from the beginning. The market has known for years that I have been selling my XRP at a slow, steady rate.”
“My investment decisions are not based on any desire to negatively impact other companies in this industry.”
However, as analyst Mati Greenspan notes, “It's not possible to sell off more than 2% of the total circulating supply of a token without influencing the price at least a little.”
Even if it's by OTC (over-the-counter) desk, Greenspan says it “still creates sell pressure,” adding,
“The claim he's making that value extracted from the market doesn't affect market prices is simply preposterous.”
Till now, McCaleb has dumped 1.05 billion XRP on the market between 2014 and 2019. However, there’s still 4.7 billion XRP worth over a billion dollars left with McCaleb.
More importantly, the rate at which he was selling his XRP stash has been limited by his settlement agreement with Ripple which is likely to expire sometime this year. As Ripple clarified in a statement:
“In 2016, we entered into a very structured agreement with Jed with the goal of ensuring distribution of his XRP holdings in service to a healthy, growing ecosystem without market disruption, with Ripple as custodian of Jed’s XRP holdings. This agreement remains in place today.”
Currently, XRP price is enjoying the bull rally, like much of the crypto market — though a bit late to the party — and is trading at $0.296. In 2020 so far, the digital asset jumped over 52%.
As we recently reported, popular trade AngeloBTC has predicted XRP to climb to at least $1 in 2020, a level last seen in Feb. 2019.