Ripple transferred over 400 million XRP to co-founder Jed McCaleb and he continues to sell
On this occasion, Ripple transferred just over 408 million XRP, worth around USD $388 million at current prices, to McCaleb’s wallet, according to Whale Alert.
The transfer is part of a multi-year agreement between the two parties – Ripple and its co-founder – that includes McCaleb slowly ditching his XRP holdings.
— Whale Alert (@whale_alert) June 3, 2021
When McCaleb left Ripple in 2014 over internal disagreements, he signed a deal not to sell all of his XRP holdings right away. This was to ensure that the sale did not affect the XRP market. The latest transfer is part of a deal in which Ripple transfers an amount of XRP to McCaleb on a monthly basis.
According to Blockchain explorer XRPScan, the transaction to McCaleb of 408 million XRP on June 3 is the latest in a series of massive transactions of the token that Ripple has been sending monthly to the co-founder since September 2020.
Since the beginning of May, data indicates that Ripple’s first CTO has sold close to 500 million XRP from his “tacostand” wallet. Over the past month, MacCaleb liquidated its XRP tokens in deposits of around 10 million, 13 million, and 17 million, changing the size every week.
The massive movement in McCaleb’s holdings is not new: he has been relentlessly liquidating his XRP funds since last year. And in the process, you’ve been increasing the average amount you undo weekly.
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In total, the co-founder of Ripple, also a co-founder of Stellar, liquidated around USD $475 million in XRP (at current prices) since the beginning of May and to date. McCaleb’s “tacostand” wallet holds just over 617 million XRP, valued at around US $ 590 million.
McCaleb’s sales follow the recent problems that the Ripple Labs company has been facing with US regulators. In December, the Securities and Exchange Commission (SEC) sued Ripple claiming that the firm and its executives raised $1.3 billion in sales of unregistered securities since 2013.
However, in a matter that has raised suspicions among community users, the SEC’s lawsuit did not include McCaleb. Instead, legal action goes against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen. Despite carrying out massive XRP sales since last year, McCaleb has not received any notice from the Commission.