Amidst XRP Woes, Are Ripple Execs Continuing to Dump Coins?

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In Brief
  • Ripple exec Chris Larsen appears to have moved 20 million XRP to exchanges.

  • This comes as another founding team member, Jed McCaleb, plans to dump billions of XRP in the coming months.

  • With SEC charges filed against Ripple, things aren't looking too good for token holders.

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People could argue that out of all the major cryptocurrencies in the space, XRP has been hit the hardest during this bull run. This has significantly stifled its opportunity for growth.

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To compound the problems, Executive Chairman Chris Larsen or other Ripple execs may have been moving at least 20 million XRP in the last day to exchanges. This equates to over $10 million.

However, this isn’t exactly a new phenomenon. Larsen and others have likely been dumping hundreds of millions of XRP on the market, and it continues to flounder. 

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However, compared to Ripple Labs ex-CTO Jed McCaleb, this is peanuts. McCaleb has access to billions of XRP, regularly dumping them on the market. McCaleb receives tokens based on XRP trading volume metrics, with estimations that he may be dumping up to 3 billion on the market in the coming months.

With this massive sell-side price pressure, the XRP price could greatly suffer. It seems McCaleb doesn’t really care about the future of the platform, trying to offload hundreds of millions of dollars worth as fast as he can, which he hopes to accomplish by the end of 2021.

XRP price chart over the last year | Source :CoinGecko

Coin Dumps and the SEC

It appears that Ripple and its executives are becoming well known for their coin dumps, with the massive sales a likely reason the Securities and Exchange Commission (SEC) is pursuing the firm.

In the last few months, XRP has been under extreme pressure as the SEC (the US financial regulating body) has declared it a security. It requires SEC registration before Ripple can conduct sales. Larsen is one of the execs the SEC has accused of taking part in the massive dumps.

Bagholders Beware

As both Larsen and McCaleb dump XRP, it doesn’t seem the problems between Ripple and the SEC will be resolved anytime soon. Both parties released a joint letter saying that they can’t come to terms with each other and fundamentally disagree with the other’s opinions. Whether or not they will settle the case out of court is unclear, but for now, it seems that both sides are gearing up for a legal battle. 

Since the announcement of charges, many exchanges and Ripple partners have suspended services. When dealing with securities, companies need to undertake an additional litany of measures to comply with authorities, which many do not want to do. With dull prospects in the future and two of the most important founding team members dumping large quantities of XRP, it may be a challenging year for retail hodlers.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Harrison is an analyst, reporter, and lead specialist at BeInCrypto based out of Tel Aviv, Israel. Harrison has been involved in the cryptocurrency space since late 2016 and is passionate about decentralized ledger technology and its potential.

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