The co-founder of Ripple is offering his XRP tokens for sale… What effect does this have on the price of the currency?
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Answer The co-founder of Ripple is offering his XRP tokens for sale… What effect does this have on the price of the currency?
Jade McCaleb is the co-founder of Ripple and the founder of the Stellar project as well.
Jade McCaleb recently offered his Ripple coins for sale.
According to analysts, McCaleb offered an excessive amount of his XRP to sell, perhaps due to the high price of XRP at the present time and the recent increase in its trading volume, which means accelerating the sale process and increasing the ability to sell a larger amount.
For information, the huge amount of XRP coins owned by “Jaid Makaleb” is due to the settlement agreement he signed with the Ripple administration when he decided to withdraw, in which “Mallab” obtained 9 billion XRP, and he has now sold more than half of what he possesses.
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Jed McCaleb Sells Half Of The 4.5 Billion XRP He Received Ripple
Ripple analyst Leonidas Hadjiluzu says that according to data from the XRP Ledger, McCaleb currently owns about 3.836 billion XRP, and due to the increase in the average daily volume of XRP, he is now able to sell his XRP at a faster rate than before.
After the drastic increase in the volume of XRP (according to CMC), it only made sense for Jed to increase his sales, according to his deal with Ripple.
9.9 million XRP sold today, making it Jed’s new ATH sales. At this rate, 3.836 billion Jeds will run out after 387 days.#XRPcommunity pic.twitter.com/kyMgYlUbIL
– Leonidas Hadjiloizou November 29, 2020
According to the terms of the settlement agreement, McCaleb is able to sell up to 1% of the average daily volume of XRP.
Due to the significant increase in the price of XRP over the past few weeks, this has resulted in much higher trading volumes than before, so McCaleb took advantage of the higher volume to sell a larger amount.
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On November 29, analyst Hadjiluiso estimated that at this rate, McCaleb would be able to sell everything he owns in 387 days, given that he recently sold 9.9 million XRP of the 3.83 billion XRP he owns.
The effect of selling “Jed McCaleb” on the price of the Ripple currency:
The above-mentioned calculation regarding the possibility of McCaleb selling all his possessions within 387 days is an estimate only, and it is not possible for McCaleb to offer his XRP for sale on a daily basis due to the terms of the agreement that oblige him to offer it for sale on a weekly basis every Sunday and according to the trading volume Ripple.
Read:Report: Buying Large Quantities of XRP… Is Ripple’s Price Approaching?
As for the effect on the price of XRP, Tell Matty Greenspan, founder of Quantum Economics and a former cryptocurrency analyst, said that it would be impossible for McCaleb to sell his huge stake in XRP without negatively affecting the coin’s price, due to the increased supply of XRP and more XRP injected into the market.
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