Stellar (XLM) Creator Jed McCaleb Could Hurt XRP By Selling Off His Ripple Tokens
Jed McCaleb Could Harm XRP By Selling Off His Tokens
Jed McCaleb, Ripple’s Co-Founder seems to be selling his XRP possessions, something that could increase the pressure on XRP. Mr. McCaleb has increased the sales of his billions of dollars held in XRP, the third most valuable virtual currency in the market.
Jed McCaleb left Ripple some years ago and is now working in the rival project Stellar, which has its own cryptocurrency XLM. These increased sales of XRP tokens could harm XRP and its position in the market.
Ripple uses the XRP tokens created by the company in order to power different products and services provided to financial institutions. The increasing sales of XRP could be very negative for the value of the cryptocurrency. This shows that early-stage virtual currency projects can face several several problems if creators start to sell their assets.
Representatives at Ripple decided not to comment on the matter. However, McCaleb explained that he is not selling more than what he agreed to with Ripple in the past.
McCaleb started the Stellar project back in 2014 after working at Ripple and the cryptocurrency exchange MtGox.
Ripple is working with many financial companies offering cross-border payment services in order to reduce transaction times and costs. There are several companies working with Ripple including Santander Group, BBVA, HSBC or JP Morgan.
Back at the beginning of the current year, XRP tokens reached an all time high of $3.2 dollars per coin. At the moment, Ripple is the main holder of XRP tokens, something that is negative for them since the community accuses XRP of being centralized.
Since he started working at Ripple, he accumulated a fortune of 5.3 billion XRP and 2 billion XRP in a donor-advised fund. Both, McCaleb and the fund had a combined fortune of 7.3% of the XRP supply, close to $4 billion dollars. However, he has sold an important number of coins since then.
Mr. McCaleb was selling between 20,000 to 40,000 XRP a day. However, later in August,he started selling an increased number of XRP tokens. For example, he moved in several occasions more than 499,000 XRP.
The average daily trading volume has not changed in the last months. This is quite important since McCaleb arranged with Ripple to sell a specified amount of XRP depending on the registered trading volume of this virtual currency. However, McCaleb is not able to control these funds since his XRP was placed in a custodial account at Ripple, which controls the releases of the tokens.
At the moment, XRP is being traded close to $0.45 dollars and has lost 15% of its value in the last 24 hours. XRP has a market capitalization of $18 billion dollars.