The Final Lap: Jed McCaleb’s XRP Holdings Nearing Zero – What Does It Mean?

For those deeply entrenched in the cryptocurrency world, the name Jed McCaleb likely rings a bell. And for those closely following XRP, the end of an era is upon us. After eight long years, the former co-founder and CTO of Ripple Labs is on the verge of completely divesting his substantial XRP holdings. Think of it as the final stretch of a very, very long marathon – one that has kept a watchful crypto community on its toes.

The Great XRP Unload: How Much is Left?

As of now, Jed McCaleb’s wallet holds a mere 81.53 million XRP, translating to roughly $26.55 million. While that’s still a significant sum, it’s a far cry from the billions he once possessed. To put it in perspective, he’s been offloading XRP at a considerable pace, averaging 4.06 million XRP daily in the past month. However, recent data from Jed Balance, a dedicated tracking website, reveals an acceleration. Since Sunday, June 26th, daily transfers have surged to a whopping 7.34 million XRP, equivalent to about $2.39 million per day.

When Will the Selling Spree End?

This is the million-dollar question (or rather, the multi-million XRP question!). At the current accelerated rate, projections suggest McCaleb’s wallet could be empty within the next two to three weeks. This prospect has undoubtedly brought a sense of anticipation, and perhaps even relief, to a segment of the cryptocurrency community.

Community Buzz: What Are Crypto Insiders Saying?

The nearing conclusion of McCaleb’s XRP sales hasn’t gone unnoticed. Crypto Mason, a popular TikTok influencer and YouTuber, recently shared with his 115,000 Twitter followers that a substantial 22 million XRP had been released in just three days. Even a parody account, cheekily named “Definitely not the real Jed,” has joined the conversation, posting a photo hinting at the imminent end of the sell-off.

A Look Back: The Genesis of the XRP Holdings

To understand the significance of this event, let’s rewind. McCaleb was a key figure in Ripple’s early days, co-founding the company (then known as OpenCoin) in 2012. As part of the founding team, he received a significant chunk of the initial 20 billion XRP allocated to the founders. However, after disagreements with Ripple leadership, McCaleb departed in 2014. With him went his considerable XRP stake, estimated to be around 9% of the total supply at the time. Interestingly, he then went on to co-create Stellar (XLM), a competing payment technology.

The Lock-Up Agreement: A Necessary Measure?

Recognizing the potential market impact of such a massive sell-off, Ripple Labs and McCaleb agreed on a lock-up schedule for his XRP. This agreement aimed to prevent a sudden market crash. Here’s a breakdown of how the selling restrictions evolved over time:

• First Year: A limit of $10,000 worth of XRP sold per week.
• Following Three Years: The limit increased to $20,000 worth of XRP per week.
• 2018-2019: The restrictions shifted to a quantity of tokens, capping sales at 1 billion XRP annually.
• 2020 Onward: The annual limit was raised to 2 billion XRP.

The Selling Spree in Numbers: Key Milestones

Data from Jed Balance highlights some interesting periods in McCaleb’s XRP sales:

• January to August 2021: A significant 2.74 billion XRP was sold during this period, coinciding with XRP prices reaching highs of $1.84 in April.
• September 2021 to Early January 2022: A pause in selling activity.
• Since January 2022: A renewed and ongoing phase of XRP dumping.
• Year-to-Date 2022: McCaleb has already sold off 627.6 million XRP.

Impact on XRP’s Price: Correlation or Coincidence?

It’s worth noting that on June 24th, just days after hitting its lowest point since January 2021 ($0.28), XRP experienced a notable price surge of approximately 30%. Whether this increase is directly correlated to the anticipated end of McCaleb’s sales is a subject of debate within the crypto community. Some believe the reduced selling pressure could positively impact the price, while others maintain that broader market forces are the primary drivers.

Looking Ahead: What Happens After the Final XRP is Sold?

The imminent depletion of McCaleb’s XRP holdings marks a significant moment for XRP and the broader cryptocurrency landscape. While the direct impact on price remains to be seen, the removal of this consistent selling pressure could be perceived as a positive development by many investors. It closes a long chapter in XRP’s history and allows the market to potentially move forward without this particular overhang. The crypto community will undoubtedly be watching closely in the coming weeks as Jed McCaleb’s XRP journey reaches its conclusion. What happens next is a new chapter waiting to be written.