- Rumors regarding the selloff of XRP by Jed McCaleb.
- Redditors argue about the miscalculations of WSJ reports by Tomio Geron.
- XRP prices soaring due to Coinbase’s announcement.
Moreover, Ripple (XRP) is on the news more often in the past few weeks or months. This is due to various rumors regarding the new apps being developed by Ripple or due to the partnership deals with banks or due to the alleged sell-off by Jed McCaleb.
Let’s break it down!
Jed reportedly has XRP worth $20 billion, which puts him at 40th place in Forbes’ list of world’s richest people. Jed decided to sell off 100 million XRP back in 2015 to a user for USD$1 million when XRP was below one cent value. The exchange Bitstamp chose to freeze the deal from going through until the legal terms between Ripple and Jed were sorted out.
In February 2016, the terms to Jed’s selloff include:
- The first year of the agreement, Jed and the DAF will be able to collectively sell 0.5 percent of the Average Daily Volume of XRP for each day of the week, including weekends and holidays.
- Second and third years of this agreement, Jed and the DAF will be able to collectively sell for each day of the week 0.75 percent of the Average Daily Volume.
- The fourth year of the agreement, Jed and the DAF will be able to collectively sell for each day of the week 1.0 percent of the Average Daily Volume.
- For any time after the fourth year of the agreement, for each day of the week, Jed and the DAF will be able to sell 1.5 percent of the Average Daily Volume.
But as reported in a WSJ article, Tomio Geron claims that the selloff by Jed has increased stating,
“In July, Mr. McCaleb was selling 20,000 to 40,000 XRP a day. However, starting in August, according to a public clearinghouse of token trades, he started selling 499,312 XRP a day, and at one point sold 752,076 a day. In other words, each day he moved and sold about 35 times the limit outlined in his 2016 agreement with Ripple. For example, over six days ending Wednesday, Mr. McCaleb sold more than 500,000 XRP a day, or about $150,000.”
Tom further adds by saying, “The average daily trading volume of XRP on the Ripple consensus ledger—which is how Mr. McCaleb’s cap calculation doesn’t vary considerably in recent months and not enough to account for the change in his daily sales.” And, “Mr. McCaleb can’t make these changes without Ripple’s approval, according to the 2016 agreement.”
A Redditor posted an article yesterday covering the selloff of XRP by Jed as reported by Tomio Gerom and the frustration due to the selloff. But a few Redditors (Sesquipedalian_EUW, technicallycorrect2) in the same article argued that the WSJ article published today, is not correct and has enormous miscalculations and wrong information written all over it and that it is bad reporting. Whereas in this Reddit post, the users are dismissing it as FUD and waiting to buy more XRP tokens once the selloff hits rock bottom.
Timeline of Ripple
True or not, the price of XRP has seen a lot of changes; this is the timeline according to Coinmarketcap about the price variation:
- 18th September – XRP – $0.27
- 19th September – XRP – $0.32
- 20th September – Rumors about xRapid and collaboration of Ripple with banks– XRP – $0.69
- Between 25th & 26th September – XRP – $0.44 to $0.51
- Current price (at the time of writing this article) – XRP – $0.516376
We are yet to see how the prices will react as Coinbase has announced the addition of more cryptocurrencies to their listing.
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Image Courtesy- Coinspeaker, CryptoGlobalist