According to reports from XRPScan, Ripple Co-Founder Jed McCaleb has sold nearly 265 Million XRP tokens this month, with nearly 389 Million tokens still left in his ~tacostand account Inventory.
McCaleb and Ripple
Jed McCaleb has been working on Ripple since 2011, becoming a member of the founding team when the company officially launched back in 2013. McCaleb then left Ripple next year right after launch, joining the team at Stellar (XLM). McCaleb was awarded around 8Billion XRP tokens for his contributions to the development of OpenCoin, which was then later rebranded to become Ripple. McCaleb still continues to receive funds on a fixed schedule. He mentioned on a forum called XRP Talk that he intends to sell the funds as soon as he receives them because he has already donated funds to multiple charities, including Literacy Bridge, Give Directly, and many others.
Donate and Sell
Hoarding funds will also give no benefits to McCaleb, so his idea of spreading is indeed the right way to deal with the exceptional amount of funds. McCaleb has frequently been selling XRP, according to data from multiple sources. Recent data on McCaleb’s activity on XRP shows that he has sold over 265Million XRP tokens worth nearly $363Million since the start of May this year. The token is currently priced at around $1.118, which also saw a price drop from a high of $1.669 due to the recent market crash this week.
Ripple Lawsuit Issue
The XRP sales from McCaleb kept on going even after the U.S SEC’s lawsuit issued against Ripple back in 2020. The SEC has allegedly said that Ripple and two major executives have assembled over $1.3Billion using an unregistered, digital asset offering.
This lawsuit has been seen as very controversial. Founder of TechCrunch, Michael Arrington, has doubts about the lawsuit, saying that the Howey test used to determine an asset’s security is very outdated and old and needs to be updated. This old test does not count in the advancements, so it puts unnecessary question marks on the security of assets without properly analyzing each and every detail of the asset’s operations. Michael Arrington is also the founder of Arrington XRP Capital which was launched back in 2017, designed to invest in blockchain technology.