Guess who's moving the last part of their Ripple settlement again? Co-founder Jed McCaleb just transferred 63,704,590 XRP ($ 12,293,769) to his personal wallet. XRP holders prepare for possible incoming dump.
Last night hours, Whale Alert marked the gigantic XRP transfer of the Jed McCaleb Settlement to his personal wallet. More than $ 12 million in XRP could be preparing to be sold on the market.
🚨 63,704,590 #XRP (12,293,769 USD) transferred from Jed McCaleb Settlement to Jed McCaleb wallet
– Whale Alert (@whale_alert) April 7, 2020
The cryptocurrency transaction tracker also added that this transfer was only part of the agreement between McCaleb and Ripple:
"From your Tacostand account the #XRP is sent periodically to the rLkM account … Q1A where it is being sold"
ℹ️ This transfer is part of the settlement between Ripple and Jed McCaleb. From his account Tacostand the #XRP periodically gets sent to the account rLkM… Q1A where it is being sold. https://t.co/je2py8Ntc4
– Whale Alert (@whale_alert) April 8, 2020
Just as Ripple's token seemed to be recovering and the company announced a new listing in an exchange, XRP holders once again faced with the ongoing problem of Ripple's oversupply and the sale of Jed McCaleb over them.
Unsurprisingly, the alert was met with the usual headline fury and disdain from XRP opponents. However, the consensus was practically the same, summing it up in two words:
Jed McCaleb is the most recognized whale on the market
McCaleb joined Ripple in 2014 and was the main mastermind behind the creation of his XRP token. But then he left the company to start Stellar and agreed to a significant XRP deal that will be paid over time.
As Whale Alert noted, this is generally sold on the open market to the frustration of XRP holders. However, under the terms of the contract, McCaleb can only sell a certain amount and is obligated to do so with caution by liquidating at average market prices. So does your continued token sale affect the price of XRP?
“Compared to the total trade volume per day, the amount you sell seems insignificant. For example, from June 1 to 7, 2017, he sold a total of 2.5 million XRP for $ 741,000 USD. The total trading volume that week for the XRP / USD pair on Bitstamp alone was XRP 127 million, but the volume is not a good indicator of how much the market can absorb. ”
The publication goes on to say that there is insufficient data to confirm whether its regular dumping has an effect on price. However, since he is exclusively selling XRP:
“It is adding to the net amount available. It is also important to note that earnings appear to be being collected directly through Bitstamp and we found no evidence that any of these are being reinvested in the cryptocurrency market. ”