Jed McCaleb, one of the co-founders of the Ripple project, discounted huge amounts of XRP last year.
Ripple sales season.
Jed McCaleb, co-founder of Ripple Lab and former CTO, sold more than $400 million worth of cryptocurrency XRP in the first 12 months of 2020, according to Whale Alert (@whale_alert), a cryptocurrency wallet monitoring service. This amount represents nearly 3% of the current market capitalization.
According to Whale Alert, as the former CEO of Ripple Labs, McCaleb was due about 9 billion XRР. He has now left the project and is the CTO of the Star Foundation and is still getting rid of his XRP signals.
Anyone who has been following McCaleb’s consistent XRP tokens for a long time is not surprised that he decided to get rid of the coins during the project’s difficult times.
The BeInCrypto editorial board previously reported that Ripple Labs has been stuck in litigation since early 2020 and has repeatedly complained about overly aggressive regulation by U.S. authorities. Toward the end of the year, the U. S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple.
However, XRP custodians didn’t sit idly by and retaliated by filing a countersuit against the SEC, accusing the regulator of causing them “irreparable harm.” A White House-like petition by XRP defenders, launched Dec. 29, has already garnered more than 37, 000 signatures.
Some members of the community say that Mc Caleb’s sale, which is taking place amid litigation between the SEC and Ripple, will only exacerbate the project’s problems. Recall that the regulator’s accusations that XRP is not a currency like Bitcoin or Etherium, but securities, have already become very expensive for Ripple. As a result of these accusations, the token has lost more than half of its market capitalization.
XRP is gradually recovering, but its growth rate is still not comparable to that of other cryptocurrencies.