Jed McCaleb has reportedly dumped $75 million worth of XRP on the market in the January 1 – August 3, 2020 period. According to Whale Reports research, the Ripple co-founder is selling an average of 1.74 million XRP per day—a 266% increase in relation to his 2019 sales.
In 2014, McCaleb posted on a Ripple forum that he owns 9 billion XRP—his compensation for co-founding the company. As part of Ripple’s agreement with McCaleb, he is limited in regard to how many XRP he is allowed to sell. But McCaleb has been dumping his XRP on the market nearly every day for about six years.
It is estimated that McCaleb’s remaining XRP supply is around 4.7 billion XRP, and at the current rate McCaleb is dumping his XRP on the market, it would take roughly 20 years for him to drain his supply. However, Whale Reports believes that McCaleb’s settlement agreement with Ripple will end in 2020, and that the restrictions regarding how much XRP he can sell daily/yearly/monthly will be lifted.
Ripple is a sinking ship
Earlier this year, CoinGeek explored why Ripple CEO Brad Garlinghouse and McCaleb do not believe in XRP; and the recent report from Whale Reports as well as Ripple’s Q2 2020 market report confirms this. If either of them believed in Ripple’s future, then they would not continually dump XRP on the market. Instead, they would hold on to their XRP supply with the belief that their coin will continually have more utility as time goes on.
However, Ripple’s latest market report shows that the company sold $32.55 million worth of XRP in Q2 2020, $1.75 million more than they sold the previous quarter. It is no secret that Ripple would not be profitable if they did not continually dump millions of dollars worth of XRP onto the market. Ripple’s CEO even told the Financial Times that Ripple would not be profitable or cash flow positive if they did not make the multi-million dollar XRP sales each quarter.
With no revenue streams, utility, or value-creation taking place on XRP, it is only a matter of time until the company runs out of money and can no longer sell XRP each quarter to stay afloat.
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