An co-founder of the Ripple network, who presently works as CTO of Stellar Lumens (XLM), Jed McCaleb, has in a recent development increase the amount of XRP he sales, this when compared with his sale a year ago, is about by about 13-fold increment.
The development will likely put-off the ever-concerned XRP community a controversies continues to resurface over the unpromising XRP price growth.
McCaleb who was one of the founding team at Ripple left the company in 2014 after a heated disagreement with another founding team member, Chris Larsen. However, the dissension spurred two major issues believed to have been negatively affecting the price of XRP. The issues include; ceaseless XRP sale by the former Ripple Head, McCaleb, and the sales by Ripple itself.
It is important to mention that 20 billion XRP were allocated to the founders out of the 100 billion XRP that was created with the Ripple network at outset block, while the remaining 80 billion XRP went to Ripple itself. When McCaleb resigned, he was compensated with 9 billion XRP out of the 20 billion allocated to founders.
Nevertheless, in a bid to guide against dumping XRP market price, the Ripple network signed an agreement with the Stellar CTO, and was later renewed after a break in the first quarter of 2016. The new agreement postulated a donation 2 billion XRP to a charitable fund (DAF) of choice, while the remaining fund will be held in a conservative account.
The rules established to guide the conservative account include that McCaleb and the DAF are only allowed to make a maximum sale of 0.5% of the average daily XRP volume, and it would be increased to 0.75% and 1% in the second and third year respectively. However, the agreement permitted that McCaleb and the DAF could sell 1.5% average daily XRP on daily basis after the fourth year.
McCaleb’s Sales Reached a New All-time High of 6,180,850 XRP in August.
It is now crystal clear that the first four years after the agreement has passed in February 2020, and McCaleb’s XRP has increased since February couple with the fact that the past few months have seen rise in XRP volume.
After making an average sale of 346.087 XRP on daily basis in 2018, McCaleb’s sales rose to 481.950 in 2019. In 2020, the rate surged by as the former Ripple boss is said to be making an estimated average of 1,862,383 XRP sales per day.
XRP Arcade in a report indicated that McCaleb’s sales have reached a new all-time high of 6,180,850 XRP average sales per day. Nonetheless, it will take McCaleb more than six years to sell all its XRP holdings if it continues to sell 1.862 million XRP per day, while its stocks could be depleted in less than two years if it continues to sell 6.180 million XRP per day.
Even though the impact of McCaleb’s sales on the price of XRP has remained controversial in the Crypto community, XRP continues to trend on the upside trend with bullish signal indicating that the cryptocurrency explode in the next few weeks.
