Jed McCaleb, Ripple’s co-founder, left the startup in 2013. He went on to build Stellar the following year. McCaleb is said to have kept XRP worth billions of dollars. His heightening XRP sell-off is said to be one of the major factors that caused its price to fall early this week according to WSJ.
XRP is used by Ripple to support its business and to expand it. It is also used to invest in or finance other projects such as Omni and the venture fund Xpring. It has the third largest market cap as per CoinMarketCap valued at over $20 million. Last weekend its market cap outshone Ethereum. It became the second largest cryptocurrency but only for a few days.
McCaleb has responded to WSJ through an email. He affirms that he is not selling more than what he has agreed upon with Ripple.
In 2014, he and Ripple signed an agreement restricting McCaleb’s XRP sale to a daily cap. This initial agreement was then revised two years later. In the amended agreement he is permitted to sell the tokens based on its average daily volume. His XRP is held under custody by Ripple, therefore he has no direct authority in the releasing of his own tokens.
Up until this August, McCaleb has been trading his XRP lower than the 0.75 percent cap. But by July, he was selling off tokens worth $20,000 to $40,000. And by August 499,312 of his said tokens were put in the market.
But despite this news, XRP is still trading healthy with over $1 billion volume as today.