Jed McCaleb, co-founder of Ripple Labs, sold 28.6 million XRP tokens, worth more than $ 8.78 million at press time, after stopping their sales for 25 days. McCaleb, it's worth noting, sells the funds he was awarded for co-founding the company.
McCaleb is said to have started working at Ripple in 2011 and was part of its founding team when the company launched in 2013. While he left the company in 2014 to work at Stellar (XLM), he received 8 billion XRP tokens for his role in the development and founding of OpenCoin, which was later renamed Ripple.
The entrepreneur received the funds on a fixed schedule and has made it clear through XRP Talk, a forum for investors and XRP proponents, that he plans to sell the funds he receives, as he has already donated part of the funds to charities such as Give Directly, Literacy Bridge and others.
Since then, it has been selling XRP periodically. The most recent sale was detected by researcher Leonidas Hadjiloizou.
Jed’s Tacostand had paused XRP sales ever since the SEC lawsuit was announced. After 25 days of no sales, 28.6 million XRP was sold today. pic.twitter.com/XTMgmvDFZF
– Leonidas Hadjiloizou (@LeoHadjiloizou) January 18, 2021
His 25-day hiatus may have been related to the US Securities and Exchange Commission's (SEC) lawsuit against Ripple and its other co-founders, Brad Garlinghouse and Chris Larsen, alleging that the company and its executives “raised more of $ 1.3 billion through an unrecorded value ”.
Hadjiloizou he pointed that Jed in the past stopped his XRP sales to allow a charity he donated the funds to sell. He added that "there is no way of knowing why the sale resumed." Speculating, he said he "could have expected some advice from his lawyers or for a million other reasons."
On demand, the price of XRP plunged more than 50% in a slew of delisting announcements from major cryptocurrency exchanges including Bitstamp, Coinbase, Binance.US, Bittrex, and others. Asset managers, market makers, wallets, and brokers soon stopped supporting XRP as well.
On top of that, the price had been inflated thanks to the airdrop of the Flare network's Spark (FLR) token in early December. The data shows that once the rumors of the lawsuit began to circulate, XRP fell from about $ 0.60 to a low of $ 0.18 before recovering.
At press time, XRP is trading at $ 0.3.
The price of the cryptocurrency apparently did not rebound after any news related to the SEC's lawsuit against Ripple, but rather because the community joined it. As previously reported, more than 39,000 XRP supporters have asked the United States government to recognize XRP as a currency in a petition.
The petition apparently seeks to counter the SEC's claim asking the federal government to step in and evaluate XRP as a currency. Also, while several trading platforms stopped XRP trading as a preventive measure, cryptocurrency exchange Uphold claimed that it will keep XRP on its platform until the lawsuit is resolved.
Additionally, he noted that the SEC's goal is to protect consumers, and he thinks it's hard to see “how a lawsuit that makes XRP essentially worthless and inflicts billions of dollars in losses on retail investors” would square with that goal. .