According to a recent post of the service Whale Alert on the Medium, in the period from 2014 to 2019 the founder of Ripple Labs and now chief technology officer Stellar jed McCaleb sold already more than a billion XRP tokens. According to sources, he is still about 4.7 billion coins.
Recall that we already wrote about the situation in our Telegram channel.
Overall, if you look at the daily trading volume to other currencies, the quantity sold Machalaba ripples will seem insignificant. Despite this, several days later, jed drew attention to the publication. In one of the small interview cryptooperation resource Cointelegraph he said.
I operate transparently from the start. You can check yourself that I sell my XRP slowly and consistently. My investment decision is definitely not based on the desire to harm any company in this industry. I think history has shown that my sales have absolutely no impact on the state of the market, and I don’t see any reason why this situation may change.
Jed McCaleb who founded and worked in Ripple until 2013 and received more than 5 billion tokens, also tried to fend off accusations of dumping XRP — that is, the collapse of the exchange rate coin. According to him, he does not consider that between different blockchains can be some competition.
We are all working to make the blockchain something important, to become a viable and flexible industry. And I think that we can achieve much more if we work together. As for me, I focus on nurturing ecosystems Stellar.
The agreement with the former Ripple founder
14 Aug 2014 the representative of the Ripple published a post explaining how McCaleb earned their tokens XRP. It was painted like 20 billion tokens were distributed among the founders. Even then McCaleb announced that it intends to sell their own tokens. In response, Ripple Labs invited him to enter into a seven-year contract that would guarantee a reasonable implementation of its share token XRP so that it does not hurt the ecosystem of Ripple. Here’s what the company representative told Cointelegraph.
In 2016, we concluded a very thorough agreement with jed. The purpose of this agreement is to stimulate reasonable sales of tokens and nurturing of the ecosystem without harm to the market. In this case, the Ripple acts as a store XRP-savings of jed. This agreement operates to this day. Most of the information in the public domain.
Interestingly, although the original of such agreement has been referred in August 2014, it now appears that in 2016 Ripple replaced the contract with the updated version. According to a new document, a seven-year contract with Ripple machalaba extended to 2023.
What happens to the price of XRP?
While McCaleb claims that his sales do not affect the market price of XRP, there are those who are with him do not agree. For example, the founder of Quantum Economics and a former senior analik the eToro’s Mati Greenspan believes that these bulk sales was the reason for the low dynamics of XRP.
The price is a reflection of the result of confrontation between the parties of the sale and the purchase. So the more tokens are sold, the lower the price. Especially when we are talking about such huge amounts.
We will remind, it not the first similar case. In particular, in December Vitalik Buterin told about earnings Ethereum Foundation during bullrun 2017-2018. Then the guys have sold 70 thousand esters and have earned about $ 100 million on this deal. Read more about the situation read in a separate article.
Nothing to do with the sales of stocks of cryptocurrencies its founders will not work, so it will be easier to accept. And besides, it is unlikely that the holders of large amounts of coins are interested in the fall of their course. Perhaps in this case they will act carefully.
The actual rate of the token can be viewed in our class ranking cryptocurrencies, and in cryptodata of hontarov there are a whole bunch more.
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