Jed McCaleb, a co-founder of Ripple, has dumped about $75 million in XRP into the market since the start of 2020, according to reports made by Whale Reports. As it stands now, the reports indicated that McCaleb has sold, on average, about 1.74 million XRP every day. This stands as a stark 266% increase when reviewing his sales made back in 2019.
Selling Millions Of XRP Daily
It was back in 2014 when McCaleb revealed on a Ripple forum that he owns a staggering 9 billion XRP. This comes as direct compensation for co-founding the company at large. McCaleb has made an agreement with Ripple regarding how much XRP he is allowed to sell, but for the past six years, the man has been continuously dumping XRP on the market.
As it sounds now, McCaleb’s remaining supply of XRP is somewhere around 4.7 billion, in total. At the current rate, McCaleb is dumping his XRP, its going to take about 20 years for the man to completely drain his supply. Even so, Whale Reports warned that it’s convinced that the settlement agreement McCaleb made with Ripple will expire in 2020. What this means is that McCaleb may no longer have a limiter on his daily/monthly/yearly sales of XRP by 2021.
An Faithless Project
It was earlier this year when CoinGeek, a popular crypto media outlet, did a piece claiming that both McCaleb and Brad Garlinghouse, the CEO of Ripple, had no faith within their own coin. With the recent Whale Reports, coupled with Ripple’s own Q2 2020 market report, it seems to be confirmed. The prevailing logic behind this sentiment is this: If these people really did believe in their cryptocurrencies, they wouldn’t be dumping it by the millions every day. If you were convinced that a thing would be more valuable in the future, you wouldn’t go selling as much as you can every single day of your life, now would you?
Simple Lack Of Sustainability
The latest reports from Ripple shows something else entirely, however. The company itself has managed to sell $32.55 million in XRP for Q2 2020. This stands as $1.75 million more than what they sold the quarter prior. At this point, it’s common knowledge that Ripple as a company can’t turn a profit if it doesn’t dump millions of USD in XRP tokens on the market. Garlinghouse even said as much to the Financial Times, stating that Ripple wouldn’t be cash flow positive or even profitable if it weren’t for the multi-million dollar sales of XRP they did every quarter.
As it stands now, XRP is gaining no forms of value-creation, utility, or even revenue streams. The entire company has now turned into a ticking timebomb, forced to simply wait until it eventually runs out of money and can’t sell XRP every quarter to stay afloat.