How Owners Of XRP Are Trying To Limit Jed McCaleb’s Selling Impact
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Ever since it was created, ripple and it’s token has got a long history of successful use cases in numerous different instances. Cross-border payments seem to be the most popular ones as well as International settlements. But ever since the start of 2020, the Ripple token has gone into somewhat of a slump. This comes despite the high ambitions that the San Francisco-based blockchain initiative has for global expansion and aggressive growth of its consumer base.
So why has the token been in a dreaded downtrend since the start of the year? One analyst and trader has given a detailed view on the media site, medium explaining that owners of the token are stifling its price.
CryptoWhale said the following in his post:
“My theory for the downtrend is that the owners are suppressing the price to ensure Co-Founder Jed McCaleb’s selling doesn’t have a major impact on future growth.”
McCaleb founded the San Francisco company with Chris Larsen who left the firm in order to start the Stellar cryptocurrency.
As a little bit of background on this, in 2013 McCaleb left Ripple and when the co-founder and its company split, many of the staff for the firm were trying to estimate the negative effect that this would have.
McCaleb was in possession of a huge amount of tokens at the time which is estimated to be around 7 billion. If these were sold, it would have a massive impact on the price of the asset.
The board of directors for the San Francisco firm was very well aware of the situation and wanted to prevent this from happening. This is when McCaleb and the company founded themselves in an agreement six years ago in 2014 saying that the co-founder won’t be able to sell more than a specified amount of the token on a day-to-day basis.