- Former CTO and co-founder of Ripple, Jeb McCaleb, dropped more than $400 million worth of XRP in 2020.
- Coinciding with the SEC charges, XRP holders are facing heavy pressure on cryptography.
- The price of XRP fell by more than 50 percent following the SEC charges, but has since recovered slightly.
It has been revealed that one of the co-founders of Ripple has sold huge amounts of XRP in the last 12 months.
Jed McCaleb, one of the co-founders of Ripple Lab, has sold more than $400 million worth of XRP in 2020, which represents nearly 3% of its current market capitalization.
XRP sales on the rampage
Many of those who have followed the movements of McCaleb’s XRP reserves are not surprised that this massive sale coincided with the toughest legal allegations Ripple has ever faced.
XRP holders, however, retaliated. A petition to the White House asking the SEC to consider XRP as a currency reached nearly 40,000 signatures.
As former CTO of Ripple Labs, McCaleb was promised nearly 9 billion XRPs according to Whale Alert, a platform dedicated to tracking the activity of the largest crypto holders. McCaleb is currently the CTO of the Stellar Foundation, a non-profit organization that oversees the Stellar network.
McCaleb left Ripple after an argument. Since then, he has been selling his XRP shares almost as soon as they are unlocked.
In troubled waters
To add one more problem to Ripple, this massive sale by McCaleb took place in parallel with the Securities and Exchange Commission (SEC) charges against Ripple.
The SEC claims that XRP is not a currency like Bitcoin or Ethereum code scam, but rather a security. This implies that Ripple Labs and its executives engaged in the unlicensed sale of securities for more than $1 billion.
These extremely serious accusations have shaken the Ripple community as a whole, as the cryptonautics industry has lost more than half of its market capitalization as a result of this announcement.
XRP has since recovered slightly, but the positive price movement is nothing compared to the growth of other competing cryptomoney companies, similar in size and scope.