Ripple co-founder is downloading $ 100,000 dollars in XRP every day
Co-founder of Ripple Jed McCaleb, which is also the co-founder of the Stellar project, is selling its XRP tokens at very high prices. Apparently, and according to some reports, the company sells $ 100,000 of XRP dollars every single day.
McCaleb has received 9 billion XRP tokens when Ripple was founded. At the same time, in 2014, he announced that he wanted to cash out all of his XRP on the market. This situation created several problems with Ripple and XRP. The famous virtual currency lost 40% in just 24 hours.
After that, McCaleb agreed to sell its tokens for a long period of time, so it was possible to reduce the effects on the price of XRP. The first agreement allowed McCaleb to sell between $ 10,000 and $ 20,000 in XRP per week. However, later in 2016, the agreement changed. McCaleb was authorized to sell 0.5% of the daily volume of XRP during the first year and 0.75% for the following two years.
Because of this, McCaleb is selling over $ 100,000 in XRP tokens each day, something that could eventually generate sales pressure in the market.
Furthermore, he decided to donate 2 billion XRP to charity. McCaleb has already sold 1.7 billion XRP, which means it still has about 3.6 billion XRP to be liquidated in the market.
McCaleb it has also sold a significant number of tokens in the last few weeks. Recently, XRP has been volatile. About ten days ago, the price of this cryptocurrency skyrocketed more than 100% in a few days, from $ 0.27 to $ 0.8. Later, it fell below $ 0.45 but quickly stabilized around $ 0.55.
At the moment, Ripple has 55 billion XRP in a collateral deposit account controlled by the company. Ripple says it would be able to download up to 1 billion XRP tokens a month, however, it sold less than a third of that amount. The circulating offer of XRP is close to 40 billion coins.
As the company explains, the offer will continue to increase to 70 billion in just five years and 90 billion in 15 years. After that, the XRP coins will be leveled near 95 billion.
This shows that even though McCaleb stops selling its XRP coins, it is still an incredible downward pressure on the price of the famous virtual currency. This is something investors should consider when investing in this cryptocurrency.
At the time of writing this article, each XRP is sold close to $ 0.567 dollars and has a market capitalization of $ 22.64 billion.