According to an analysis by blockchain watchdog Whale Alert, Jed McCaleb - the co-founder of Ripple, has sold more than 1 billion XRP between 2014 and 2019.
In one Medium post Announced on February 6, Whale Alert has estimated that McCaleb has about 4.7 billion XRP left to sell, which is equivalent to about 5% of XRP's total supply. At the current price, this XRP is worth over $ 1 billion, surpassing the $ 135 million estimate of Whale Alert that he has made through XRP sales to date.
McCaleb sold an additional 19 million XRP - equivalent to $ 4.13 million, last month - and Whale Alert believes that this ratio could increase this year as his agreements to restrict sales of XRP expire. force. Especially:
“At the current rate, it will take him about 20 years to sell it all out, however, his activities have been limited by the settlement agreement with Ripple - which is likely to expire by year. 2020. ”
This news has alerted some XRP holders on Twitter.
"We don't want to warn people, but I hope they now have a better view of what's going on," Whale Alert told Cointelegraph.
Whale Alert It tracks movements on various blockchains and makes announcements on Twitter and its Telegram.
90,000 transactions analyzed
Whale Alert has posted the wallet addresses that they identify as belonging to McCaleb - which were found through information on blogs, forum posts and public ledgers.
"By analyzing more than 90,000 transactions, we were able to track about 8 billion XRP from Ripple, a payment account and personal accounts that he regularly sells."
They said that McCaleb had sold out 1.05 billion XRP almost exclusively through a single exchange, Bitstamp.
Whale Alert cannot determine if the amount of coins sold by McCaleb will affect the XRP price, but the analyst said: “Because he is monopolizing the sale of XRP, he is adding to the available net amount. . "
The man behind Mt Gox, Ripple and Stellar
McCaleb is an important figure in the history of cryptocurrencies, he created the Mt. Gox exchange and is the co-founder of Stellar (XLM).
He also co-founded OpenCoin in 2012 - later became Ripple, and was allocated 9.5 billion XRP of 100 billion pre-mined supply. Much of this supply has proven controversial over the years.
The price of XRP dropped 40% in just 24 hours after he announced his intention to sell all his shares in 2014. After that, he negotiated with Ripple to establish a 7-year agreement to restrict XRP sales monthly and yearly. The deal allows McCaleb to sell 1 billion XRP in the sixth year of the deal and two billion XRP in the seventh year.
Whale Alert says we're currently in seventh year. "The post is from 2014, so if you take that as year 1, it will end up somewhere in 2020," they explained.
However, the details are still incomplete and others believe it is the sixth year in the agreement.
Following a Ripple lawsuit in 2016 accusing McCaleb of violating the deal, a revised agreement set a daily selling limit - currently at 1.5% of XRP's daily trading volume.
At the end of its analysis, Whale Alert has warned that there are billions of other XRP waiting to be released in the market.
Whether you believe it or not that blockchains like Ripple will have a bright future, the economic power and consequences of whales like Jed McCaleb cannot be forgotten, and he is not unique; co-founder Arthur Britto also holds billions of XRP in deposit - will expire at some point in the future. ”
Maybe you are interested:
Join our channel to stay up to date on the most useful news and knowledge at:
According to CoinTelegraph
Translated by ToiYeuBitcoin