Ripple, the company that holds the highest number of XRP tokens, has been in the news for the wrong reasons over the past few weeks. Analysts and members of the XRP community have been quite vocal about the way in which the company has gone about dumping large quantities of its holding at regular intervals.
Many believe that the periodic selling of XRP tokens at large volumes has led to the poor performance of the token. XRP, which is the third biggest cryptocurrency by market capitalization, has been one of the worst performers in the market so far, and Ripple’s actions are being blamed for that.
Another Major Development
In a new development, it has emerged that the company sent XRP tokens worth $26 million to the Chief Executive Officer of Stellar, Jed McCaleb.
Now, a transfer of that nature to Jed McCaleb is always going to be controversial since he used to be the Chief Technology Officer at Ripple and over the past months, he has been responsible for dumping hundreds of thousands of XRP on a daily basis. The detail was found by a Twitter account that tracks big transfers of XRP being done by the company, and it was revealed that Ripple had transferred as many as 100,000,000 XRP tokens to McCaleb on September 7.
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The company has a fraught history with McCaleb. The current Stellar CEO owned as many as $1 billion worth of XRP tokens back in 2017. After he left the company, Ripple enacted lawsuits in order to stop him from dumping his tokens quickly, and that created bad blood between the two.
While large transfers are now quite common with regards to XRP, it is important to note that the value of the token has not moved much and has largely underperformed in comparison to the market so far. CEO Brad Garlinghouse has stated that the token sales are done in order to finance a range of blockchain projects.
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