It turns out that one of Ripple’s co-founders has sold a tremendous amount of XRP in the past 12 months.
Jed McCaleb, one of the founders of Ripple Lab, sold over $ 400 million of XRP in 2020, which represents almost three percent of its current market value.
According to many who have followed the movement of McCaleb’s XRPs, it is not surprising that this massive sale coincides with the toughest legal claims Ripple has faced. So McCaleb seems to have timed its sales pretty well. XRP holders are struggling despite all this difficult process. A petition to the White House for the SEC to accept XRP as a currency has reached almost 40,000 signatures.
McCaleb, a former CTO of Ripple Labs, was promised close to 9 billion XRP, according to Whale Alert, a platform dedicated to tracking the activities of the largest crypto holders. According to Whale Alert’s estimates, the total value of McCaleb’s current and cashed XRP savings is approaching $ 1.2 billion. McCaleb is currently CTO of the Stellar Foundation, a nonprofit organization that oversees the Stellar Network. McCaleb left Ripple in recent years after a decline. Since then, XRP has been selling its assets almost as soon as it’s unlocked.
In addition, this massive sale of McCaleb is happening alongside the Securities and Exchange Commission’s accusations against Ripple. This makes the current situation worse.
Extremely serious accusations raised by the SEC shook the Ripple community to its core, and the cryptocurrency lost more than half of its market cap following this announcement. XRP has seen a slight improvement since then, but the positive price action doesn’t make much sense compared to the growth of other competing cryptocurrencies that are similar in size and scope.