One billion US dollars of XRP is about to "unblock", Ripple founder Jed McCaleb is going to "smash the disk" again?

Analysis of the blockchain monitor Whale Alert shows that Ripple co-founder Jed McCaleb sold more than 1 billion XRP between 2014 and 2019, and there are more for sale.

Gold coin of Ripple falls to the ground from space.

In a Medium post posted on February 6, Whale Alert estimated that McCaleb had 4.7 billion XRP for sale, accounting for about 5% of total supply. At today's price, this XRP is worth more than $ 1 billion, which also dwarfs the $ 135 million XRP sale that McCaleb has estimated has been made by McCaleb.

McCaleb sold another 19 million XRP last month, or $ 4.31 million . WhaleAlert believes that the amount of XRP he has sold this year may rise as the agreement to limit McCaleb's XRP sales expires. particular:

"At the current rate, it will take him about 20 years to fully sell, and his activities are limited by a settlement agreement with Ripple, but the agreement may expire sometime in 2020."

The news shocked some XRP holders on Twitter.

"We don't want people to panic, but I hope they now have a better understanding of what happened," Whale Alert told Cointelegraph.

Whale Alert has been monitoring various blockchain activities and posting notifications on Twitter and Telegram about cryptocurrency moves.

Analyzed 90,000 transactions

Whale Alert posted an address that had been identified as belonging to McCaleb and tracked it with information on its blog, forum posts and public ledger.

"By analyzing more than 90,000 transactions, we were able to track about 8 billion XRP belonging to Ripple, a settlement account, and a personal account he was actively selling."

Whale Alert said McCaleb sold almost 1.05 billion XRP through Bitstamp.

Whale Alert could not determine whether McCaleb's sell-off affected the price of XRP, but said: "Because he kept selling XRP, his actions increased the circulation of XRP in the market."


Image source: Whale Alert

The men behind Mentougou, Ripple and Stellar

McCaleb founded the Mentougou (Mt.Gox) exchange and co-founded Stellar (XLM), a key figure in the history of cryptocurrencies.

He also co-founded OpenCoin with others in 2012, which was later renamed Ripple and received 9.5 billion XRPs allocated among them when pre-mining 100 billion XRP supplies. This large supply has proven to be controversial over the years.

In 2014, after he announced his intention to sell all held XRP, the price of XRP plummeted by 40% in 24 hours. He then negotiated a seven-year agreement with Ripple, which limited his monthly and annual sales. The agreement allows McCaleb to sell 1 billion XRP in the sixth year of the agreement and 2 billion XRP in the seventh year.

McCaleb said, based on their number, we are now in our seventh year. They explained:

"The agreement started in 2014, so if you make it your first year, it should end in 2020."

However, the details of the agreement are still rough, and others believe that 2020 is the sixth year of the agreement.

Ripple filed a lawsuit in 2016, accusing McCaleb of violating the agreement, and a revised agreement places a daily cap on daily sales, which is currently 1.5% of XRP's daily trading volume.

Whale Alert warns that there are billions of XRP left for sale.

"Whether you believe that the future of a blockchain like Ripple is bright, you cannot ignore the economic power and consequences of a whale like Jed McCaleb, and he is not the only one; Ripple co-founder Arthur Britto is hosting in the hands of a third party Billions of XRP will expire sometime in the future. "