Former Ripple CTO and Co-Founder Jed McCaleb’s 8-year XRP dumping spree is on the verge of concluding. At the moment, he has only 81.527 million XRP [approximately worth $27 million], remaining in his wallet. Prominent influencer ‘Crypto Mason’ took Twitter to highlight that 22 million XRP had been released in just the past three days.
The clock is ticking
Per ‘Jed Balance’ McCaleb’s wallet has dumped an average of 4.17 million XRP over the past month. However, the former Ripple exec has ramped up the pace of his transfers of late. In just the past week, he released an average of 5.7 million XRP. Now, if the same rate is maintained, the wallet balance would shrink to 0 within 13 days.
However, if the monthly or quarterly average pace is stuck onto, it’d take another additional week, at the most, for the balance to get wiped off.
The XRP dumping back-story
The former Ripple executive has consistently been selling portions of his once 9 billion strong XRP HODLings. Being a part of the founding team, McCaleb received a share of 20 billion XRP that was dished out among all 3 founders.
Post getting into a rift with other Ripple execs McCaleb left the company in 2014. In the said process, he took along with him his entire XRP share which accounted for 9% of the total supply. A few months down the line, he co-founded another payment protocol called Stellar.
If McCaleb would have dumped all of his XRP HODLings at a go during his exit, the asset’s price would have suffered. Thus, Ripple Labs and Caleb agreed to formulate a lock-up plan for his XRP.
Per the same, McCaleb couldn’t dispose of more than $10,000 worth of XRP per week. The plan eased with time, and the offloading bar was raised to $20,000 worth of tokens per week for the next 3 years. From the USD amount, the restrictions were changed to the number of tokens subsequently. In 2018-19, the number was capped at 1 billion XRP per year, while from 2020 the ceiling was set at 2 billion per year.
Per the tracker, McCaleb has mostly accelerated his dumping during rally periods and has applied brakes during consolidation phases. Large dumpings have pushed the asset’s price down in the past. XRP has, however, managed to shield itself from minor sell-offs.
On Thursday, Ripple’s native token was trading at $0.319, down by 3% over the past day.