Former Ripple Labs founder Jed McCaleb is nearing the end of his eight-year XRP dump marathon, with only 81.53 million XRP (worth $26.55 million), remaining in his wallet’s balance.
According to Jed Balance, a website tracking his XRP holdings, McCaleb’s wallet name “tacostand” has been shedding an average of 4.06 million XRP over the last month but has ramped up daily transfers to 7.34 million XRP (worth $2.39 million), since Sunday, June 26.
At the current rate of selling his wallet may be depleted within the next two to three weeks to the delight of the crypto community.
On Wednesday, Mason Versluis, a tik tok influencer and youtuber known as Crypto Mason shared the news to his 115,000 followers on Twitter, highlighting that 22 million of XRP has been released in the past three days.
Jed McCaleb has 81,527,488 $XRP remaining!
22,007,874 $XRP has been released in the past 3 days. pic.twitter.com/tqjvOIGj68
— MASON VERSLUIS (@MasonVersluis) June 29, 2022
On Wednesday, a parody account of McCaleb with 4,500 followers who describes themselves as “Definitely not the real Jed” posted a photo in front of an eatery called “The Taco Stand”, saying “Almost there.”
Almost there pic.twitter.com/SdstUD4Kzc
— Jed McCaleb (@JedMccaleb12) June 29, 2022
The former Ripple executive has been methodically selling off chunks of his once nine-billion-strong XRP holdings since he left the company in 2014.
McCaleb was part of the founding team of Ripple in 2012 (called OpenCoin then), receiving a share of 20 billion XRP which was distributed to all three founders, which also include Chris Larsen and Arthur Britto.
McCaleb left in 2014 after a reported fallout with Ripple executives, taking with him his entire XRP share which equated to around 9% of the total supply. Later that year, he co-founded rival payment protocol Stellar (XLM).
Fearing a market crash should McCaleb offload his entire holdings at once, Ripple Labs and the former executive agreed to lock-up terms for his XRP.
The lock-up plan dictated that for the first year, he could not sell more than $10,000 worth of XRP per week. The plan would loosen up over time, raising the amount he could offload to $20,000 worth of XRP per week for the three years following.
From 2018-2019, the restrictions would apply to the number of XRP tokens instead, limiting his maximum allowed offloading to 1 billion XRP per year.
From 2020 and beyond, the amount was further raised to 2 billion XRP per year.
According to Jed Balance, McCaleb offloaded a large portion of his XRP holdings between January to August 2021, a period when XRP prices spiked up to $1.84 in April, offloading 2.74 billion of XRP.
He took several months‘ break from selling from September 2021 to the start of January 2022 and has been steadily offloading XRP again since then.
The data shows that McCaleb has shed 627.6 million XRP so far in 2022.
Related: Price analysis 6/29: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, SHIB, LEO
XRP’s price rebounded nearly 30% on June 24, four days after rebounding from $0.28, its lowest level since January 2021. Analysis from Cointelegraph noted that the token’s retracement rally could extend to $0.41 next.
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Today marks a notable milestone in the history of Ripple, the enterprise Blockchain solutions provider and cryptocurrency coin ‘XRP’. After 8 years of gradually dumping billions of XRP into the open market according to a signed agreement Jed McCaleb, Ripple’s co-founder, is slowly running out of XRP to sell.
In 2012 at the time of Ripple’s formation, Jed McCaleb, the creator of MT. Gox and Stellar, proposed a plan to stagger his XRP sales over an extended period of time to prevent a massive selloff. The aim was to avoid flooding the market with XRP and creating an immense sell pressure that could cause its value to plummet drastically.
Under the agreement McCaleb was allowed to use his earned XRP to meet his expenses, but the majority of it was earmarked for the open market. Since 2012 McCaleb has sold over 20 billion XRP, of which 9.5 billion remain today, slowly dwindling over time.
According to the agreement, McCaleb is only allowed to sell XRP through an automated tool that restricts the amount he can dump in the open market at any given time. This ensures that the market doesn’t experience sudden waves of selloffs, helping maintain stability.
However, now after 8 years of steady monthly XRP sales McCaleb’s stack of XRP is scheduled to run out in the coming weeks. With Ripple in the midst of a major expansion, reaching hundreds of new customers around the world, this is great news for existing XRP holders as the demand for XRP is expected to hike with the increased adoption.
Though the exact details remain undecided, it is widely speculated that McCaleb will be given the option to exchange his XRP for cash or equity in Ripple. In the end, it could mean a stream of continuous income for McCaleb if he decides to continue being a part of Ripple’s success.
While Ripple’s massive success has come with a yearly pack of challenges and struggles, the outcome of this agreement provides us with an optimistic outlook. With the XRP selloffs coming to an end, Ripple stands tall and ready to embrace unprecedented growth.
