Former Ripple CTO Sells 28.6 Million XRP a Month After SEC’s Lawsuit 

Almost a month after former Ripple CTO Jed McCaleb halted sales of his portion of XRP token, a new report published by Leonidas Hadjiloizou, a crypto data analyst, revealed that he sold 28.6 million XRP ($8.8 million) today. 

McCaleb got 9 billion XRP back in 2013 from Ripple, on conditions that he would only sell the cryptocurrency in batches to avoid crashing the asset’s price. 

Since McCaleb struck the deal, he has kept to his end of the bargain, occasionally dumped fewer amounts of the token in the market to ensure the price is not affected in any way. 

However, since the Security and Exchange Commission (SEC) slammed a lawsuit against Ripple last month, McCaleb halted the sale of the third-largest cryptocurrency by market cap. 

It was not clear why he took the decision, but it is believed that the long pause of 25 days was due to the SEC charges against Ripple. 

Although this is not the first time the former CTO had halted sales of the token for an extended period, Hadjiloizou noted that McCaleb had taken similar action in the past. 

According to the analyst, McCaleb did not dump his XRP in the market to enable a charity organization to sell the tokens he gifted them.  

Favoring XRP

McCaleb’s decision to stop the sale of XRP amid the SEC lawsuit seems to be an excellent move to sustain the cryptocurrency’s value. 

As widely reported, the charge prompted several exchanges to discontinue support for the cryptocurrency, as they fear they may be indicted by the SEC for supporting unregistered security on their platforms. 

This action saw the token’s value crash by more than 90% within a few days and could have crashed further if McCaleb had dumped more volumes in the market. 

Meanwhile, despite failure on Ripple’s part to resolve the issue with the SEC, the XRP community is hopeful that the previous decision will be rescinded when a new exec takes over the affairs of the commission. 

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Author: Lele Jima

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Author: Lele Jima