Image credit: source

Jed McCaleb, the former co-founder of Ripple and the CTO of Stellar Network, now has a leeway to increase his annual XRP liquidation from 750 million a year to 1 billion in 2020 and 2 billion by 2021 in a deal that has now been made public. Now in their fifth year, the original deal permits the founder tech whiz to liquidate more of his XRP holding but at a slower pace since his threat to liquidate all of his XRP holdings back in 2014.

5.3 Billion XRP Under Jed’s Control

McCaleb, who is also the founder of the now defunct Mt Gox cryptocurrency exchange, is allocated a daily quota of XRP, a limit in which he is allowed to sell on the open market. Jed controlled 7.3 billion of XRP, an amount gifted to him for his Financial Innovation, following his decision to split away from Ripple back in 2014. 5.3 billion are under the custody of Ripple and the company is tasked with assigning him a daily limit for his liquidation. He donated 2 billion XRPs to a charity, DAF.

XRP Sell-off Hastened

In a deal that prevented the collapse of XRP prices, McCaleb would sell his asset holdings over a seven-year period, helping stabilize prices.

Earlier, the terms of the deal allowed the founder to sell $20k worth of XRP per week in through to the fourth year but that was changed later in the year. In the revised deal, Jed was allowed to sell 0.75 percent of XRP’s daily volume in any other trading day.

Advertisement



CryptoMarketapp

However, it was observed that there was a sell-off spike from 40,000 to 752,076 XRPs, though when contacted he maintained that he was within his limits and not selling more than Ripple had stipulated. This marked sell-off was noticed and it affected the value transferred over the XRPL ledger in August 2019.

Lawsuits and Claims of XRP Dumping

Although supporters of the project term Ripple Inc lawsuits as “frivolous”, that should, nonetheless, be a concern to XRP holders. On one end, the company has been successful in attracting partners, with some adopting xRapid, the option that allows instantaneous and cheap settlement of fund transfer, on the other hand, despite their high-level deals, there has been regulatory uncertainty and limiting lawsuits. Besides, the US SEC is not explicit on their narrative on whether XRP is a security or a utility token like BTC and ETH. A section of the XRP trading community is also complaining that Ripple Inc is deliberately dumping on them.

Summary

Jed McCaleb's Deal with Ripple Could Suppress XRP Prices Going Forward

Article Name

Jed McCaleb’s Deal with Ripple Could Suppress XRP Prices Going Forward

Description

Jed McCaleb, the former co-founder of Ripple and the CTO of Stellar Network, now has a leeway to increase his annual XRP liquidation from 750 million a year to 1 billion in 2020 and 2 billion by 2021 in a deal that has now been made public.

Author

Dalmas Ngetich

Publisher Name

CoinGape

Publisher Logo

cryptocoach

Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.



Share on Facebook



Share on Twitter



Share on Linkedin



Share on Telegram

(Excerpt) Read more Here | 2019-11-18 11:24:38

LEAVE A REPLY

Please enter your comment!
Please enter your name here