Top Researcher Says Likely Flaw in Ripple’s Deal with Jed McCaleb Could Affect XRP Price after He Sold 29.5M XRP in a Day
Solomon Odunayo
2 min read
Leonidas Hadjiloizou, a leading crypto researcher at XRPArcade, who based his work on the XRP ecosystem, has pointed out that the possible flaw in the settlement agreement between Ripple and the co-founder, Jed McCaleb, could leave an unfavorable impact on the price of the third-largest cryptocurrency by market capitalization, XRP.
Hadjiloizou questioned Ripple’s deal with McCaleb that accords him the right to increase his rate of selling XRP, following his recent massive selloff.
Read Also: XRP Is Made to Be a Better Bitcoin (BTC) –Second Richest Man in Crypto Industry
On 6th December 2020, Hadjiloizou tweeted, “Perhaps there is a flaw in Ripple’s deal with Jed, affecting price. While the radical increase in XRP volume occurred 10-14 days ago, this had an effect on Jed’s sales 1-2 weeks later. This means Jed is now selling way more than the current market can take.”
Jed McCaleb Sold 29.5 Million XRP worth $17.6 Million
Hadjiloizou pointed at the significant selloff of 29.5 million XRP initiated by Jed McCaleb on 6th December 2020, after selling 10 million XRP for a week.
After selling 9.9 million XRP per day for a week, Jed was able to sell 29.5 million XRP TODAY. This means that this week Jed will most probably sell a total of 207 million XRP!#XRPcommunity
P.S: Thanks for the heads up @XRPizzaPie pic.twitter.com/MfKf1Qs01s— Leonidas Hadjiloizou (@LeoHadjiloizou) December 6, 2020
Considering his increased rate of the selloff, the crypto researcher expects him to effect the sale of relatively 207 million XRP this week:
“For the record. It would have taken Jed 300 days to sell 207 million XRP a year ago, at 689 395.68 XRP per day. Now, it will take only 7 days.”
Adding that “He may currently be selling 1.5% of the past few week’s volume but compared to the current volume, this percentage may rise to 5-6%.”
Read Also: Ripple Moves to Sell One-Third of Its Stake in MoneyGram for the First Time
Ripple Co-Founder Jed McCaleb Owns Over 3.8 Billion XRP
According to record, the estranged Ripple co-founder owns over 3.8 billion XRP worth around $2.2 billion at the time of writing. With the look of things, he’s keen on increasing his rate of changing his XRP trove for cash.
Based on the settlement agreement sealed with Ripple in 2016, the former CTO of the payment company can now sell up to 1% of the average daily volume of XRP for each day of the week, coupled with weekends and holidays.
Moreover, his selloff rate will increase from 1% to 1.5% of the average daily volume after the end of the fourth year of the agreement.
AFFILIATE: Trade your preferred cryptocurrencies seamlessly at Bitget.com
