Last Updated: 13 July 2022
It will take Jed McCaleb eight years, one month, and 25 days to sell all of his 9 billion XRP. According to a tweet from XRPArcade founder Leonidas, McCaleb will sell his last XRP on July 16.
16 July last day
McCaleb is selling 4.215 million XRP per day this week. He would sell the last of his remaining 22.16 million XRP on July 16.
Between now and Friday, McCaleb’s wallet, called “taco stand,” will sell an average of 4.22 million XRP per day and then another 1.08 million tokens on Saturday until it reaches zero, Leonidas said.
At the time of writing, Jed Balance, a website that tracks McCaleb’s XRP holdings, shows that there are less than 18 million XRP tokens in the wallet, worth about 5 million at the current Ripple exchange rate.
Is McCaleb suppressing XRP prices?
McCaleb is one of the founders of Ripple, and he held the role of Chief Technology Officer. In May 2014, he and Ripple announced that all his XRP would be sold in stages. Now that the end of this mandatory sale is finally in sight, the crypto community is left with questions.
Many want to know to whom and how he sold his XRP then. McCaleb is also suspected of having suppressed the price of XRP through his constant selling. Leonidas has found no evidence of this and no correlation between price and his sales.
Others wonder why the Securities and Exchange Commission (SEC) has not included him in the lawsuit against Ripple and its executives over the sale of unregistered securities. After all, Garlinghouse and Larsen are being dealt with by the SEC.
Balance sheet decreases as agreed
Jed McCaleb founded Ripple Labs in 2012, along with current CEO Brad Garlinghouse and Chris Larsen, who each received a share of 20 billion XRP. In 2014, McCaleb left to start Stellar Development after his relationship with the other two founders soured.
Executives agreed to a lock-up of McCaleb’s nine billion XRP holdings, fearful that an immediate sale would cause the stock price to collapse. The agreement prevented McCaleb, who also founded the defunct crypto exchange Mount Gox, from selling more than $10,000 worth of XRP per week.
That amount was later increased to $20,000 per week for the three years until 2017. In later years, the plan was changed to be more proportional to the total number of XRP sold, with a limit of 1 billion tokens in years 2018 and 2019 and then 2 billion per year in the subsequent years.
XRP has missed bull run
Although McCaleb’s constant selling pressure may have contributed to the fact that the value of XRP could not continue to rise, it is by no means the only factor. We just mentioned the lawsuit between the SEC and Ripple and the accompanying indictment dating back to December 2020.
You may have noticed something about the date just mentioned. Around December 2020, the bull market for cryptocurrency also began. Bitcoin, Ethereum, and virtually every other cryptocurrency rose to great heights. It seemed like new all-time highs were reached every week.
On the other hand, the price of XRP took a heavy blow. And right after the lawsuit was announced, it also became more difficult to trade XRP because many American exchanges stopped trading the currency.
In the graph below is Ripple’s price at the end of 2020. Within a few days, the price dropped, and XRP was left with a third of its value.