Over 2000 Cryptocurrency Investors Sign Petition Asking Ripple to Stop Selling XRP

Neil Dennis

More than 2,000 crypto investors have signed an online petition calling on Ripple to stop selling so many of its XRP tokens, which they believe is behind the cryptocurrency's poor price performance since the end of June.

"Ripple continue dumping billions of XRP on us, crashing the price," the petition - which reached 2,000 signatures a week ago - says. It adds:

Its amazing this sort of behaviour is widely accepted in the crypto world. Sure we know that XRP is a solid coin with major potential but this needs to stop!

XRP, which hit is record peak of $2.85 in early January, 2018, reached a cyclical high of $0.5055 on the June 22 this year, but has since fallen by 47%. By comparison - since hitting its $13,930 cyclical high on June 26, bitcoin has fallen just 25%.

Dumping on the Market

The petition, posted on Change.org by a site user called Crypto Bitlord, suggests the only explanation behind such relatively poor performance is that Ripple - the company that developed the blockchain that verifies XRP transactions - is dumping XRP on the market.

"Every day there is good news - a new bank or partnership," it says, but still the price keeps falling.

The only logical explanation is that Ripple are dumping on us. And not small amounts either. Literally billions. We have seen the reports of them disclosing this so its a fact.

While Ripple will likely be aware of the dismay felt by many who have been prompted to sign the petition, it's unlikely the company will alter its selling policy.

In early August, Ripple announced it had unlocked a billion XPR tokens from escrow worth around $314 million. The company sold $251.5 million worth of XRPin the second quarter. Rajarshi Mitra, crypto analyst at FX Street said:

While Ripple owns more than half of the total supply of XRP, the majority of it remains in escrow. Since 2016, Ripple has sold XRP worth $1.14 billion, of which 64% were sold to institutions and 36% to crypto exchanges.

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Ripple Co-Founder Jed McCaleb XRP Sale Update: 1 Billion Sold, 4.7 Billion to Go

Jeb McCaleb, a Ripple co-founder who served as its CTO until 2013, has reportedly sold over 1 billion XRP so far, and still has 4.7 billion tokens left to sell, according to a report.

On a Medium blog post Whale Alert, a Twitter-based transaction monitor, detailed that in September 2019 it reported on a 100 million XRP transaction from Ripple to McCaleb’s XRP wallet. The transaction was part of a settlement agreement between him and the firm established to determine how much he could sell.

The assets he’s been receiving are part of his compensation for helping found Ripple. Jared himself has claimed to have received 9 billion XRP spread over several addresses. Whale Alert claims to have analyzed over 90,000 transactions to track roughly 8 billion XRP to Ripple, a settlement account, and his own personal accounts, from which he sells tokens. The report reads:

In total we managed to track the sales of 1.05 billion XRP (almost exclusively through Bitstamp) between 2014 and 2019.

The report details that the average sale price was $0.129 per XRP token, which means McCaleb has so far reportedly sold $135 million worth of the third-largest cryptocurrency by market capitalization.

A ‘significant portion’ of his assets were sent to Ripple for “unknown reasons,” while 140 million XRP were donated to charity. In January 2020, McCaleb sold 19 million XRP tokens as the sales keep on going. His remaining assets are believed to be of 4.7 billion XRP, equivalent to 5% of all existing tokens.

Whale Alert adds that at the current rate it would take McCaleb 20 years to sell his tokens, worth about $1 billion. His settlement agreement with Ripple, however, is likely to expire in the near future, at which point the sale of XRP could accelerate.

The report notes, nevertheless, his trade volume is insignificant when compared to the total trading volume. Via Bitstamp, he has been cashing out as Whale Alert found “no evidence” of the funds being reinvested into the cryptocurrency space.

McCaleb, who also created the Mt. Gox exchange, has co-founder Stellar after leaving Ripple. Stellar is currently trading at $0.074, according to CryptoCompare data, while XRP is at $0.283.

Featured image via Pixabay.