Jed McCaleb is a co-founder of Ripple and constantly performs XRP dumps on the market
Ripple co-founder Jed McCaleb sold 157.9 million XRP ($ 86.8 million as of press time) on the open market from December 1 to 9. McCaleb’s last sale occurred this morning, shortly after he received an XRP payment of 266.3 million, in which he subsequently sold around 30 million XRP. After McCaleb sold his XRP this morning, the price of the XRP fell 6%.
The road to selling 9 billion XRP
Jed McCaleb was a member of the founding team of Ripple, but left the project in 2013. When he left Ripple, announced publicly that he was entitled to 9 billion XRP and that he would be selling his XRP on the open market, as well as donating some of it to charity.
At the time McCaleb made this announcement, he also mentioned that two other Ripple co-founders were entitled to a total of 11 billion XRP and that the founding team gave the remaining 80 billion XRP to the company – which was called OpenCoin on then renamed Ripple on September 26, 2013.
What many people find even more worrisome than McCaleb’s continued dumping into the market is the amount of XRP that Ripple Inc. owns and how they themselves sell XRP on the open market.
Ripple sells millions of dollars in XRP each quarter and said that if they didn’t sell XRP, the company would not be profitable. According to several sources, Ripple Inc. holds about 50% of all XRP in circulation – which many individuals find problematic. With Ripple Inc. holding what is almost the majority of XRP in circulation and selling significant percentages of its open market shares each quarter, these company shares are bound to hurt XRP’s economy and market value.
In what appears to be an effort to combat the effects that Ripple Inc. is having on the value of XRP, Ripple Inc. started making XRP repurchases every quarter and says “Ripple is buying – and can continue to buy – XRP to support healthy markets. ”