Hey, Ripple: if you want to continue to anger your fans and customers, just keep doing what you’re doing! The company has now moved more than $26 million USD in XRP units to a wallet held by one of the company’s founders, Jed McCaleb, the same man who co-founded Stellar and the now defunct Mt. Gox exchange in Japan in 2011.
Ripple Keeps Making Questionable Moves
Mt. Gox is one of the most notorious platforms in cryptocurrency history. The company lost more than $400 million USD in BTC units in February 2014 following an overnight breach that to this day, still hasn’t been fully understood or explained. It was the largest cryptocurrency theft in history until Coincheck came along in early 2018 (four years later).
That exchange lost more than half-a-billion USD in assorted crypto funds. Ironically, that exchange is also stationed in Japan, which has given the country a reputation for invoking relatively weak regulation and storage tactics.
Ripple has garnered its fair share of controversy over the years given that many retail customers and industry experts alike deem it to be a centralized currency. This is because more than 50 percent of available XRP units are still locked up in the accounts of the platform’s executives, meaning they still hold heavy control.
Many individuals claim this goes against the basic ideas of cryptocurrency, which is allegedly designed to be decentralized and lie more in the hands of the people that utilize it, whether it be for speculation or everyday payments.
A class-action lawsuit is also brewing against the falling company. Many traders believe executives have lied about the status of XRP and say it should stand as a registered security.
McCaleb has a known history of dumping large amounts of XRP. The co-founder initially earned more than nine billion XRP units when the company was created as an initial “thank you” gift for his hard work. The problem is that the dumping or sale of funds that size could easily spell the end for the world’s third-largest cryptocurrency by market cap.
So Much Money, So Much Temptation
At press time, it doesn’t look like McCaleb is taking this threat too seriously. At first, the co-founder was under a strict agreement – that he couldn’t sell more than $520,000 worth of XRP per year. However, those limitations have since dissipated, and McCaleb has taken full advantage of the situation, now selling vast amounts of XRP per day.
Perhaps he just doesn’t care about the market he’s created now that he’s super rich, given that he’s dumped several XRP in the past and XRP has crashed before. At press time, the amount of XRP he holds is worth more than $2 billion, which is a tempting sum to say the least.