• Blog
  • News
  • What is behind the sale of Jed McCaleb’s XRP billion?
News

What is behind the sale of Jed McCaleb’s XRP billion?

It is worth your attention to discuss such a fact as the fact that Ripple co-founder Jed McCaleb has sold more than one billion XRP over the past 5 years, which is exactly what the Whale Alert blockchain monitor provided.

In a Medium post published on Feb. 6, Whale Alert estimated that McCaleb has another 4.7 billion XRP left to sell, equating to around 5% of the total supply. At today’s prices, the hoard is worth more than one billion U.S. dollars, dwarfing the $135 million Whale Alert estimates he has made via XRP sales to date. However, Whale Alert is making predictions that, in 2020, the rate could still increase, McCaleb sold another 19 million, or 5.4 million last month and believes that this year’s rate may increase as agreements expire. limiting its sales of XRP. Approximately by 2040 to sell all this, but at the same time, its activities are currently limited by a peace agreement with Ripple, whose validity may expire as early as this year.

Whale Alert investigation

Whale Alert analyzed more than 90,000 transactions, tracked about 8 billion XRP in Ripple on his account and his personal accounts, and also posted addresses that may be owned by McCaleb.

Mt Goks, Ripple and Stellar: who is behind them?

McCaleb is a key figure in cryptocurrency’s history, having created the Mt Gox exchange and co-founded Stellar (XLM).

It is worth noting that for almost 8 years McCaleb has been a co-founder of OpenCoin, which later became Ripple, and was allocated 9.5 billion XRP when it offered 100 billion shipments. This large share of shipments has been controversial over the years.

XRP pricing has seen a downtrend and fell 40% in 24 hours right after he announced his intention to sell all of his assets in 2014. These events were followed by a 7-year agreement with Ripple, limiting monthly and annual sales. Under the terms of such an agreement, McCaleb could sell one billion XRP in the sixth year of the agreement and two billion XRP in the seventh year.

Whale Alert said by their count we are now in year seven. “The post is from 2014, so if you take that as year 1, then it should end in 2020 somewhere,” they explained.

However, details are sketchy and others believe that it is year six into the deal.

Following a lawsuit by Ripple in 2016 alleging he’d violated the deal, an amended agreement put a daily cap on sales, which is currently set at 1.5% of XRP’s daily volume.

Whale Alert concluded its analysis by cautioning there are billions more XRP out there waiting to be sold.

“Whether or not you believe the future is bright for blockchains like Ripple, the economic power and consequences of whales like Jed McCaleb cannot be ignored and he is not the only one; co-founder Arthur Britto also holds billions of XRP in escrow that will expire sometime in the future.”