While Bitcoin continues to show strength in its recent bullish move, other altcoins are following the same trend. Cardano (ADA) and XRP were some of those that drew the most attention during the week, with an increase of 24% and 30% respectively in the last 7 days.
However, the XRP may face more problems with the founder and former CTO of Ripple pouring millions into the marketplace.
XRP has had a good run this past week, gaining about 30% in the past few days and having one of the slightest corrections when the market changed trend, losing little value over the past 24 hours. During this good moment, the cryptocurrency (which was once the second largest in the market by capitalization) reached the value of US$1.00 in some brokerages.
However, the rally may have been disrupted by one of Ripple’s former members, Jed McCaleb.
Founder of Ripple (XRP), before leaving the project and founding Stellar (XLM), McCaleb has almost sold US$ 80 million of the currency, value that can certainly hold the valuation, especially if sales continue.
As noted by FXstreet, McCaleb decided to sell almost 57 million XRP when the currency reached the value of US$1.00. As a result, in the last two weeks, McCaleb has sent a total of 80 million XRPs to brokers to convert the altcoin into cash or another cryptocurrency of interest.
Blockchain data shows that the XRP founder made 17 transfers in 14 days, averaging 4.4 million to 6.5 million tokens on each transaction. The Great Keeper is considered a dangerous whale, as he no longer likes the project.
Despite having left the project and no longer having any connection with Ripple, McCaleb receives large amounts of XRP due to a court settlement.
Earlier this August, the former CTO received 182.3 million XRP from Ripple.
As a result, McCaleb owns many units of this cryptocurrency, with around 649 million XRPs, with an approximate value of $608 million in their portfolios. In other words, the 80 million sent to brokers represents a very small amount of how much he actually has left.
FXStreet believes that, under previous scenarios, McCaleb will likely transfer the rest of the XRP from his portfolio to brokers soon. As is to be expected, an increase in the supply of XRP to brokers can increase selling pressure and cause the currency to correct itself.
It’s not certain what McCaleb will do in the future or how it will affect the XRP market, but it sure makes the ex-CTO a point to watch. These dynamics are some of the reasons that make big names in the cryptocurrency market call the project a scam.