Ripple’s Chief Technical Officer, David Schwartz, has given a response to the widespread claim that the company’s co-founder Jed McCaleb, is dumping close to 2,000,000 XRP in the market every blessed day, this is in relation to the act of Bitcoin miners, who sell an enormous amount of BTC.
McCaleb, according to analytic platform, Whale Alert, is said to be serious about selling his XRP holding, despite the agreement reached by Ripple and the co-founder, who now oversees everything at Stellar, an open-source company he founded shortly after leaving Ripple Labs Inc.
McCaleb, par the available information from Whale Alert, sells a minimum of 1,740,000 XRP per day.
During his days at Ripple, McCaleb was the company’s Chief Technical Officer, a role he held till 2013.
Despite the agreement reached in 2014 where he was compelled to sell a limited amount of XRP, McCaleb is now hell-bent on dumping his XRP holding on the market, selling about $75,000,000 worth of XRP in 2020, while still having another 4 billion of the digital asset, and he could unleash it gradually anytime soon.
Earlier, McCaleb had been accused by Ripple of an agreement breach, however two entities reached another settlement in 2016 and was announced by Monica Long, senior vice president of marketing at Ripple.
The agreement mandates that a certain amount of XRP be transferred to McCaleb every month, and this is being done routinely by Ripple.
Crypto Community Criticizes Ripple
Meanwhile, the increased sales of XRP by the Ripple co-founder has driven much criticism from crypto observers, including crypto Youtuber “Young And Investing” and Blockstream CEO, Adam Back, who mocked David Schwartz for “waxing poetic about innovation”, despite McCaleb and Ripple “dumping on retail insane amounts per day.”
Adam was taken aback by the XRPArmy whom he remorselessly branded “stupid” for buying more XRP upon noticing the company’s no-regard-attitude for the XRP community.
The Blockstream CEO also wondered why the Security and Exchange Commission has not clamped down on Ripple till this moment.
Ripple CTO David Schwartz Responds on McCaleb’s Incessant Sales of XRP
Responding to the vituperation, Ripple’s trillion-dollar man, David Schwartz said McCaleb has the right to sell his XRP holdings, and this should not be misconstrued as dumping on the bag holders.
He said giving the action negative names is but nefarious since Bitcoin miners who sell crypto holdings almost every time are not painted black, referencing that “Bitcoin has to sell millions per day just to run securely.”
“What security model is worse than requiring honest users to actually spend more than any attacker is willing to pay?,” he asked.
Schwartz, therefore, concluded that both the attitude of Bitcoin miners and that of McCaleb have the same effect on token holders.