A recent analysis reveals that Jed McCaleb, a prominent co-founder of Ripple, has sold over one billion XRP tokens to date. His remaining holdings amount to approximately 4.7 billion XRP, representing a significant portion of the cryptocurrency’s total supply.
Blockchain monitoring service Whale Alert provided these insights, tracking McCaleb’s transactions from 2014 through 2019. The findings highlight both the scale of his past sales and the potential future influence on the XRP market.
Understanding Jed McCaleb’s XRP Sales
McCaleb’s cumulative sales exceed 1 billion XRP, with nearly all transactions executed through the Bitstamp exchange. Whale Alert’s study involved analyzing over 90,000 separate transactions to accurately trace the movement of these funds.
His remaining holdings of 4.7 billion XRP are valued at over one billion dollars at current market rates. This sizable inventory constitutes nearly 5% of all XRP in circulation.
The Role of Legal Agreements in XRP Sales
McCaleb’s selling activities have been governed by a legal settlement with Ripple. Initially established in 2014, this agreement imposed strict monthly and annual caps on the volume of XRP he could sell.
A revised agreement in 2016 further tightened these restrictions, introducing a daily sales limit set at 1.5% of XRP’s total daily trading volume. These measures were designed to prevent market disruption from large-scale sell-offs.
Market Reactions and Investor Concerns
News of McCaleb’s substantial remaining holdings has sparked discussion among XRP investors. Past announcements related to his sales have sometimes correlated with price volatility.
For example, within 24 hours of McCaleb announcing his intent to sell his entire XRP allocation in 2014, the token’s price dropped by roughly 40%. This historical precedent contributes to ongoing market sensitivity around his wallet activity.
The Future of McCaleb’s XRP Holdings
A key question for the market is the status of the legal settlement restricting McCaleb’s sales. Whale Alert suggests the agreement may expire in 2025, potentially allowing for accelerated selling.
If the current pace of sales continues unchanged, it could take decades to liquidate the remaining 4.7 billion XRP. However, an expiration of the settlement agreement would likely alter this timeline significantly.
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Beyond McCaleb: Other Major XRP Holders
It is crucial for investors to recognize that McCaleb is not the only individual with substantial XRP holdings. Other early adopters and co-founders, such as Arthur Britto, also hold billions of XRP in escrow.
These escrow arrangements are scheduled to release funds over time, meaning the market must continually absorb distributions from multiple large holders, not just one.
Frequently Asked Questions
How much XRP does Jed McCaleb still own?
Jed McCaleb currently holds an estimated 4.7 billion XRP. This represents a significant portion of the total supply and is valued at over one billion dollars based on recent prices.
What restrictions are placed on his ability to sell?
His sales are governed by a legal settlement that imposes a daily cap, currently set at 1.5% of XRP’s total daily trading volume. This agreement was designed to prevent market manipulation and instability.
Could his future sales impact the price of XRP?
Large sales from any major holder can increase selling pressure on an asset. Historical data shows that announcements related to McCaleb's sales have previously been associated with short-term price decreases.
Who are the other major XRP holders to watch?
Besides McCaleb, Ripple Labs itself holds a large amount of XRP in escrow. Other co-founders and early investors, like Arthur Britto, also control substantial sums that are periodically released.
What is the significance of the settlement agreement expiring?
If the settlement restricting his sales expires, the daily selling cap could be lifted. This would allow McCaleb to sell his remaining holdings at a much faster rate, which the market may view as a potential risk.
Where can I monitor large XRP transactions?
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