Ripple Labs co-founder and ex-executive, Jed McCaleb has been on a selling spree of XRP tokens since he left the firm. Meanwhile, XRP holders’ lawyer raised an important question over this selling activity as they are involved in the tussle with SEC.
Jed McCaleb on a selling spree
According to John Deaton, the US watchdog claims that Ripple’s native token is an investment contract with the blockchain firm. It also believes that the firm enriched itself by token sales. He inquired why the SEC is allowing the Co-founder to sell XRP.
As per the data, McCaleb has sold more than 52 million XRP tokens since the beginning of July. He’s been selling over 4 million tokens every day. However, the last week of June saw a sudden increase in the selling amount. More than 44 million XRP tokens were during this week.
The authority assets that today’s XRP token is unregistered security even if they are not sold by the Ripple. This was the main reason that many exchanges delisted the token. Going by this theory they would have taken some action against McCaleb.
Deaton affirms that the ex CTO now has no alleged control over the blockchain, unlike the sued individuals.
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XRP price down by over 90%
Meanwhile. McCaleb now holds around 18 million tokens. With this strategic selling, the wallet will run out of holdings by June 16, 2022. It has taken Ripple’s co founder about 8 years, and 2 months to finally get rid of its 9 billion XRP. He has possibly sold more XRP’s than any other exchanges.
On the market side, Ripple’s XRP prices have dropped by 54% over the past 90 days. It is trading at an average price of $0.327, at the press time. However, XRP’s 24 hour trading volume has jumped by 91% to stand at $1.1 billion.
However, Ripple filed its response to the SEC’s appeal to seal the amici motion. The letter mentions that the facts do not support the Authority’s claims.
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