Ripple and XRP are in many areas; it has achieved remarkable success, especially when it comes to cross-border payments and international transfers. However, since the beginning of 2020, XRP has not been able to support Ripple’s aggressive growth in its customer base, as well as global expansion plans, so the asset is doomed to a long downtrend.
“XRP Price is Suppressed”
CryptoWhale, one of the known names of the crypto community, suggests that crypto holders are pushing the XRP price. Jed McCaleb, who founded Ripple with Chris Larsen, parted ways with the company to establish another cryptocurrency Stellar (XLM), which has a high similarity with XRP.
Jed McCaleb is also known as the founder of the largest Bitcoin exchange Mt.Gox, which once performed the majority of BTC transactions and was the focus of controversy with its unexpected collapse in 2014.
Jed McCaleb reported that when he showed the date 2013, he decided to leave Ripple earlier in the year. When Jed McCaleb decided to leave, everyone could predict the negative impact. Jed McCaleb had XRP (about 7 billion tokens) that could seriously affect the price of the digital asset when sold. Ripple’s board of directors tried to avoid this potential problem for precisely these reasons. Therefore, an agreement was reached with the consensus of the two sides that McCaleb could not sell more than a certain amount of XRP per day.
Will the Price Rise When Jed McCaleb’s Effect Is Over?
Tensions between the parties increased after the events with Ripple. In fact, Ripple had attempted some methods to reduce Jed McCaleb’s impact on the market.
For example; In the first quarter of 2020, Ripple sold $ 1.75 million of XRP, hoping to reduce McCaleb’s impact on the market. The trader named CryptoWhale; He stated that the selling pressure would continue until he sold Jed McCaleb’s cryptocurrencies, and only then could the price see the expected growth.