Ripple’s XRP is showing declining momentum again just one day after recovering around 37% yesterday. The cryptocurrency fell nearly 20% from its $ 0.37 peak on December 24th, following the news that one of the largest crypto exchanges would suspend XRP trading and deposits for US customers on Friday, December 25.
In the official announcement of Bitstamp, it was reported that XRP trading and deposits will be suspended for US users after the lawsuit against XRP as a security.
In addition, Researcher Leonidas Hadjiloizou thinks that Ripple’s co-founder (and former CTO) Jed McCaleb has stopped selling XRP shares. The researcher believes this may be due to the SEC case against Ripple, which the regulator announced on December 21.
For those who don’t know, the company’s former CTO regularly gets its share as Ripple helps find (9 billion tokens). It buys this through regular payments and then sells several million XRP in one go. According to the compromise agreement signed when leaving Ripple in 2013, it cannot launch all 9 billion XRP at once. So McCaleb is doing this slowly.
On December 9, it received a massive payment of 266,305,309 XRP. On December 23, he received another massive XRP package of 133,152,654 XRP from Ripple. According to Bithomb’s data, the last XRP sale made by McCaleb from the “tacostand” wallet took place on December 23. Leonidas Hadjiloizou shared this fact and said that the former CTO stopped selling cryptocurrencies.
The crypto community feels that McCaleb is concerned after the SEC filed a lawsuit against Ripple, its CEO, Brad Garlinghouse, and its co-founder, Chris Larsen. McCalleb is also a Ripple co-founder and sells XRP, just like Larsen and Garlinghouse. Larsen and Garlinghouse have been accused of selling illegal securities.
Leonidas Hadjiloizou also touched on the important Ripple event upcoming in a different twitter post. Hadjiloizou talked about the possibility of releasing 1 billion XRP in custody by Ripple on January 1. One wonders whether Ripple will change its unlocking plans in light of its ongoing legal action.