Drama around Ripple’s XRP: Co-founder sells another 28.6m XRP – despite SEC charges
Ripple Labs co-founder Jed McCaleb has sold over 28.6 million XRP tokens this week – despite ongoing charges against the company. The sale totals about $8.58 million at the time of writing.
The U.S. Securities and Exchange Commission (SEC) has filed charges against the company as well as co-founder Christian Larsen and current CEO Bradley Garlinghouse.
In a statement from the SEC, the charges relate to Ripple raising Bitcoin Cycle funds totalling more than $1.3 billion through an unregistered, ongoing offering of digital securities.
Jed is back
After a 25-day hiatus, McCaleb is back to selling XRP – according to crypto data researcher Leonidas Hadjiloizou. According to the researcher, this was now the second time McCaleb has taken a break from selling his XRP holdings.
The first time McCaleb had taken a break from selling Ripple’s XRP (To Buy Ripple Guide) was when he allowed a charity to sell its donations. He did not sell during that time.
Hadjiloizou explained that the reason for the 25-day pause in McCaleb’s sale of Ripples XRP was likely due to the SEC’s allegations and advice from legal counsel.
Jed’s Tacostand had paused XRP sales ever since the SEC lawsuit was announced. After 25 days of no sales, 28.6 million XRP was sold today. pic.twitter.com/XTMgmvDFZF
– Leonidas Hadjiloizou (@LeoHadjiloizou) January 18, 2021
Ripple’s XRP has seen a dramatic drop in price in recent weeks following the SEC charges. After a strong rally in late 2020, Ripples XRP has since fallen fifty percent in price. It is now trading at $0.30 (down from $0.60 in mid-December).
Will the SEC complaint lead to dumping?
Several major exchanges have already announced that they will stop XRP trading on their platforms. This is likely an attempt to avoid a backlash from the SEC.
While 2021 was not a good start for Ripple, Polkadot has now overtaken Ripple in terms of market capitalisation. Polkadot now holds fourth place as the project’s price rises to new all-time highs.
Ripple may be in the spotlight for all the wrong reasons. However, CEO Bradley Garlinghouse took to Twitter to celebrate the appointment of new SEC chief Gary Gensler. Gensler has been described as pro-Bitcoin as well as a proponent of blockchain adoption.
Ripple CEO still has hope
Commenting on the appointment, Garlinghouse said:
„We are ready to work with SEC leadership and the broader Biden administration to find a path forward for blockchain and crypto innovation in the US.“
McCaleb has been steadily selling XRP in the past. The former CTO dumped over $400 million worth of XRP in 2020 alone.
McCaleb received about 4.7 billion XRP tokens during his time at and after leaving Ripple. It doesn’t look like he intends to stop selling while he still owns Ripple’s XRP (To buy Ripple with Paypal guide).