Jed McCaleb, the former co-founder of Ripple and creator of Stellar, increased XRP sales by 13 times compared to 2019.
For a long time, two main reasons have been cited as the reason for the price drops in XRP. The first of these is of course Ripple’s own sales, which attracted reactions… The second is the sales made by the former XRP co-founder Jed McCaleb, who had a big share in the establishment of XRP Ledger and is now working hard for Stellar Lumens.
Jed McCaleb, who was once the head of Ripple but left in 2014 due to a dispute with Chris Larsen, who created XLM and is now the CTO of Stellar Lumens, had received 9 billion XRP compensation that the founders were entitled to receive. However, in order to prevent a sales-induced market collapse, the parties made an agreement after February 2016, and agreed to make the payments piece by piece.
While 80 billion of the 100 billion XRP created in the Genesis block went to the Ripple company, 20 billion were given to the founders. McCaleb was also entitled to 9 mi of these 20 billion XRP.
According to the agreement made, McCaleb’s 2 billion XRP would be given to a charity at his own request. The remaining XRP would be stored in his account. Some rules were introduced for this account. Ripple’s former co-founder, along with its charity, could sell no more than 0.5 percent of the average volume of XRP at a daily rate. This percentage increased to 0.75 percent in the 2nd and 3rd year. In the 4th year, it was 1 percent. In the period after the 4th year, the charity and McCaleb would be able to sell 1.5 percent of the daily XRP volume.
Sales are at an all-time high!
According to XRPArcade’s determination, the 4-year period expired in February 2020, and there has been a significant increase in McCaleb’s sales since this period. Both the increase in XRP volume and McCaleb’s right to sell 1.5 percent of the average daily volume, as required by the agreement, have a serious effect on this.
While McCaleb sold an average of 346,087 XRP per day in 2018, this figure was 481,950 in 2019. In 2020, the number of XRP sold increased almost 4 times compared to a year ago. According to XRPArcade’s calculations, McCaleb sold an average of 1,862,383 XRP daily in 2020.
August is breaking a record
As can be seen in the graph, sales increase significantly after March 2020, and sales in August clearly overshadow the previous months. While the sales (daily) until August did not exceed 4 million, the average sales for this month is 6.180.850 XRP.
If McCaleb’s daily sales figure continues to average 1 million 862 thousand, it will take more than 6 years to finish all XRP. If the average sales are 6 million 180 thousand, this period will be less than 2 years.
135 million dollars sales in 5 years
The impact of McCaleb’s sales on the price of XRP is constantly being discussed in the crypto community. WhaleAlert published a study earlier this year in which McCaleb sold $ 135 million worth of XRP over the past five years at an average price of $ 0.129. The study stated that sales are a potential risk to XRP’s price stability.
Despite McCaleb’s record-breaking sale in August, the XRP price is now increasing in direct proportion to the existing bull market in the crypto universe.