Posted 1 year ago | by Ben Armstrong
XRP Holders Prepare for Price Dump – Ripple Co-Founder Unlocks 63.7 Million XRP
On April 8, Whale Alert flagged a gigantic XRP transfer, comprised of 63,704,590 XRP, from Jed McCaleb Settlement to Jed McCaleb’s wallet. This means more than $12 million worth of XRP could be sold, as they are now unlocked.
XRP holders could be in for a possible price dump, though this is pure speculation. So far this week XRP prices are up modestly, and are currently sitting a little bit below $0.20 USD.
The crypto transaction tracker Whale Alert noted that this transfer was a part of a new settlement between Ripple and McCaleb:
’From his account Tacostand the #XRP periodically gets sent to the account rLkM…Q1A where it is being sold’’
Is XRP Going to Fall?
After XRP appeared to be on a steady climb higher, this news may put some amount of negative speculation into the XRP market.
Ripple announced a new exchange listing for XRP, but XRP holders could face a problem from what some view as an over-supply of XRP, and sales from one of the people who helped create the token.
McCaleb worked Ripple back in 2014 and helped to create the XRP token. Then he left the company to work with Stellar and agreed on a settlement from XRP to be paid his overtime.
Wild Times in the Ripple Market
While there may be some XRP sales, the transfer of these XRP tokens isn't a sure bet against the price of Ripple. By the conditions of the settlement contract, McCaleb may only sell a certain amount of the coins and is obliged to do so with the caution of average market prices.
According to a Whale Alert blog post:
"Compared to the total trade volume per day, the amount he is selling seems insignificant. For instance, from the 1st to the 7th of June 2017, he sold a total of 2.5 million XRP for $741,000. The total trade volume that week for the XRP/USD pair on Bitstamp alone was 127 million XRP, but volume is not a good indicator for how much the market can absorb."
The post continues to say that there is not enough data to confirm whether McCaleb’s regular selling affects the price.
However, he is exclusively liquidating XRP:
"He is adding to the net amount available. It is also important to note that it seems that the profits are being cashed out directly through Bitstamp and we found no evidence that any of it is being reinvested into the crypto market."
On a longer term basis, XRP prices are well below the highs they logged in February of this year. Link most risk assets, cryptos appear to be following the overall path of global liquidity, and the flight-to-safety trade that has hit stocks, commodities (except gold), and many other tokens.