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Massive XRP Dumping Could Take Price Pain As Co-Founder Cash In

McCaleb still holds 2.89 billion XRP tokens.

The ex-CTO could get rid of all his tokens as early as May 2021.

McCaleb sold $ 400 million worth of XRP in 2020 alone

The price of XRP could suffer in the coming months as former CTO and ex-founder Jed McCaleb could sell nearly 3 billion of these tokens on the market.

The XRP is fighting to retain a place among the first five cryptomonnaies at present. The real possibility that ex-CTO and Ripple founder Jed McCaleb sells all of his stakes won’t help XRP.

McCaleb, who left Ripple several years ago to found Stellar (XLM), still owns nearly 3 billion XRP tokens. Crypto analyst Leonidas Hadjiloizou recently tweeted that Ripple’s ex-CTO could get rid of all of his XRP holdings by the end of the year. Even very probably from the month of May.

Hadjiloizou is a big fan of XRP data and admits McCaleb may be looking to get rid of the rest of his tokens this year. McCaleb currently holds 2.89 billion XRP. The tweet also suggests that McCaleb could get rid of over 38 million XRP per day this week, for a total of $ 166 million.

XRP recovers from SEC accusations

XRP appears to be on the mend following charges against Ripple Labs by the US Securities and Exchange Commission ( SEC ). A massive sale by the ex-CTO could diminish any decent takeover of the project.

Additionally, the cryptocurrency could see its market capitalization drop. That would only give him a slim chance of making it into the top 10. McCaleb reportedly sold over $ 400 million of this token in 2020 alone. Even after the SEC charges were announced, McCaleb reportedly sold over 28.6 million XRP, or $ 8.58 million at the time.

The possibility that the Ripple co-founders‘ market dumps nearly 2.89 billion coins over several weeks could cause the price to drop dramatically.