Ripple’s Co-Founder is Dumping $100,000 Dollars in XRP Every Day
Ripple’s co-founder Jed McCaleb, which is also the co-founder of the Stellar project, is selling off his XRP tokens at very fast rates. Apparently, and according to some reports, the company is selling $100,000 dollars of XRP every single day.
Mr. McCaleb received 9 billion of XRP tokens when Ripple was founded. At the same time, in 2014, he announced that he wanted to cash out all his XRP on the market. This situation created several problems to Ripple and XRP. The famous virtual currency lost 40% in just 24 hours.
After it, McCaleb agreed to sell his tokens during a long period of time, in this way, it was possible to reduce the effects on XRP’s price. The first agreement allowed McCaleb to sell between $10,000 to $20,000 dollars in XRP per week. However, later in 2016, the agreement changed. McCaleb was allowed to sell 0.5% of XRP’s daily volume during the first year and 0.75% in the next two years.
Because of this, McCaleb is selling over $100,000 dollars in XRP tokens each day, something that could eventually generate selling pressure in the market.
Additionally, he has decided to donate 2 billion XRP to a charity. McCaleb has already sold 1.7 billion XRP, meaning that he still has around 3,6 billion XRP to liquidate in the market.
McCaleb has been also selling an important number of tokens in the last weeks. Recently, XRP has been volatile. Around ten days ago, the price of this cryptocurrency skyrocketed more than 100% in just a few days, from $0.27 up to $0.8 dollars. Later, it fell under $0.45 but rapidly stabilized around $0.55 dollars.
At the moment, Ripple has 55 billion XRP in an escrow account that is controlled by the company. Ripple says that it would be able to dump up to 1 billion XRP tokens per months, however, it has been selling less than a third of that amount. XRP’s circulating supply is close to 40 billion coins.
As the company explains, the supply will continue to increase to 70 billion in just five years, and 90 billion in 15 years. After it, XRP coins will be leveled close to 95 billion.
That shows that even if McCaleb stops selling his XRP coins, there is still an incredible downward pressure to the price of the famous virtual currency. This is something that investors should take into account when investing in this cryptocurrency.
At the moment of writing this article, each XRP is being sold close to $0.567 dollars and has a market capitalization of 22.64 billion dollars.