The huge XRP assets of Ripple co-founder Jed McCaleb are a constant topic in the crypto scene. Now that XRP is sparkling with significant price gains, McCaleb can make more Ripple money every day than ever before.
The story of Jed McCaleb and Ripple (XRP) by no means ended in 2012, when co-founder McCaleb retired from Ripple. Because over the years McCaleb will be paid out in XRP and he is still expected to hold close to 4 billion XRP. Terms of the contract with Ripple only allow McCaleb to earn up to 1.5 percent of the global trading volume in XRP through its sales on a daily basis. He has been consistently taking advantage of this quota for quite some time and it is leading to discussions whether McCaleb does not influence the price of XRP. Now crypto analyst Leonidas Hadjiloizou has pointed out new anomalies in McCaleb’s sales strategy via Twitter. Based on public block chain data, Hadjiloizou shows that McCaleb’s sales of XRP have jumped from almost 10 million XRP a day to almost 30 million a day.
After selling 9.9 million XRP per day for a week, Jed was able to sell 29.5 million XRP TODAY. This means that this week Jed will most probably sell a total of 207 million XRP!#XRPcommunity
P.S: Thanks for the heads up @XRPizzaPie pic.twitter.com/MfKf1Qs01s
— Leonidas Hadjiloizou (@LeoHadjiloizou) December 6, 2020
McCaleb is divesting XRP on a large scale – good news or bad news?
Fact is: XRP trading volumes have increased massively since mid-November, which is closely related to the upcoming airdrop of the new DeFi Token Spark on December 12th, which rewards XRP balances. McCaleb, however, would not be able to benefit from Spark’s airdrop, as he was explicitly excluded from it.
However, McCaleb is allowed to account for up to 1.5 percent of the daily trading volume of XRP itself and this amount has multiplied by the alleged comeback of XRP. According to Hadjiloizou, the amount McCaleb has to adhere to is calculated weekly on Sunday on the basis of the average values of the previous days. So McCaleb is in a position to massively sell XRP at relatively good prices, obviously automated.
Hadjiloizou calculates that at the current pace it would only take about a year until all of McCaleb’s XRP reserves are sold. This is basically good news, as it was previously assumed that McCaleb’s sales could last until after 2025. The bad news is that now that the price of XRP is falling again and McCaleb continues to massively sell XRP because of the weekly rule, this could actually affect the price. In this case, the automated adjustment of the rules for McCaleb, which is actually built into the contract, will then take effect too slowly.
Conclusion: XRP price flutters risky
You notice: There are currently two important factors that influence the price of XRP. One is the eagerly awaited Airdrop from Spark for XRP, the second is Ripple ex-primitive Jed McCaleb. Calming down can be expected after the Spark closing date of December 12 at the earliest, until then additional investments in XRP remain an adventure accompanied by above-average risks. After all, Jed McCaleb does not really seem to believe in sustainable price gains on XRP, because he would not have to sell his coins – he is already a multimillionaire.
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