A leading crypto researcher accentuates that there will be a potential flaw in Ripple’s deal with co-founder Jed McCaleb which can negatively impact the performance of the 3rd largest cryptocurrency.
Leonidas Hadjiloizou questions Ripple’s deal with McCaleb after the co-founder of the company considerably increased the selling of his enormous XRP trove.
“While the radical increase in XRP volume occurred 10-14 days ago, this affected on Jed’s sales 1-2 weeks later. This means Jed is now selling way more than the current market can take.”
Hadjiloizou highlights last December 6th, McCaleb unloaded 29.5M XRP after marketing less than 10M XRP for a week. The crypto researcher assumes that the former Ripple CTO will vend 207M XRP.
Hadjiloizou puts into setting the unexpected surge in McCaleb’s selling activities. “For the record. It would have taken Jed 300 days to sell 207 million XRP a year ago, at 689,395.68 XRP per day. Now, it will take only 7 days.”
The XRP researcher stresses that in terms of percentage, McCaleb’s sales may increase as much as fourfold this week.
“He may currently be selling 1.5% of the past few week’s volumes but compared to the current volume, this percentage may rise to 5-6%.”
McCaleb owned over 3.8B XRP and it appeared that he is hurrying the rate at which he sells his crypto assets for cash. According to the settlement agreement that he made in 2016, the former Ripple executive can now sell up to 1% of the average daily volume of XRP every day of the week, together with weekends and holidays.
When the fourth year agreement is over, McCaleb will be able to sell around 1.5% of the average daily volume.
No Comment