29.5 Million XRP Tokens Dumped by Jed McCaleb in One Day. When Will He Stop?

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Sun, 12/06/2020 - 18:25
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Alex Dovbnya
Ripple co-founder Jed McCaleb has started unloading his XRP holdings at a dizzyingly fast speed
29.5 Million XRP Tokens Dumped by Jed McCaleb in One Day. When Will He Stop?
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Data shared by researcher Leonidas Hadjiloizou shows that Ripple co-founder Jed McCaleb unloaded an eye-popping 29.5 million XRP in a single day on Dec. 6.  

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Image by LeoHadjiloizou

No fiat limits

Together with Chris Larsen, McCaleb founded OpenCoin back in 2012. It was later renamed to Ripple Labs that went on to become a blockchain decacorn.  

After leaving the San Francisco-based company company to complicated relationships with other board members, McCaleb founded rivaling Stellar.  

McCaleb was awarded a hefty stake of 9 billion XRP tokens. In May 2014, he announced his intentions to liquidate his holdings before agreeing to put in place contractual controls.          

Ripple Labs later sued McCaled for allegedly violating the terms of the aforementioned agreement and then chose to reach a settlement with him in February 2016 after a legal battle that lasted almost a year.

The new settlement significantly boosted his selling abilities that were no longer limited by fiat dollars. Instead, his sales are dictated by global trading volumes. 

Beyond the fourth year of the revised agreement, McCaleb is able to liquidate up to 1.5 percent of XRP’s global trading volume per day.

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Billions of tokens left to dump

At this rate, according to Hadjiloizou’s estimations, McCaleb will be able to dump a total of 207 million XRP in a single week: 

“While the radical increase in XRP volume occurred 10-14 days ago, this had an effect on Jed's sales 1-2 weeks later. This means Jed is now selling way more than the current market can take.”

As reported by U.Today, XRP’s trading volume hit a new all-time high in early November because of its monstrous rally.

The bad news for the XRP community is that McCaleb has approximately 3.7 billion tokens left to dump.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.