How much money did the CTO cash out before the eight-year sell-off is coming to an end?

Ripple (XRP), which has become less and less present in recent years, is about to have a “big thing”.

The latest data from Jed Balance shows that there are only 17,945,934 XRP left in the wallet of Ripple’s first chief technology officer, Jed McCaleb, which is about $5.56 million according to the secondary market price of $0.31, according to the average daily selling in recent months. Speed ​​calculation, Jed will probably be liquidated in the next few days, which also means that its eight-year XRP sell-off is coming to an end.

The eight-year sell-off is coming to an end, how much did the former Ripple CTO cash out?

As a member of the core founding team of Ripple when it launched in 2012, Jed shared approximately 20 billion XRP shares with Chris Larsen and Arthur Britto in the initial distribution of XRP. In 2014, due to a conflict of ideas, Jed chose to leave (and subsequently created Stellar) and took his share of XRP with a total of about 9 billion XRP.

In order to limit the impact of Jed’s selling on the secondary market of XRP, the Ripple team signed a sell-limiting agreement with Jed at that time. According to the agreement, Jed cannot sell more than $10,000 of XRP per week in the first year, and in the next three years, it will be relaxed to not sell more than $20,000 of XRP per week. After that, the content of the agreement has been adjusted to some extent, from The specific amount of the constraint becomes the constraint on the number of tokens, that is, Jed is required to sell a maximum of 1 billion XRP during 2018-2019, and after 2020, it will be relaxed to a maximum of 2 billion XRP.

It is precisely because of the existence of this restriction agreement that Jed’s sell-off will last for eight years, so how much money did Jed cash out with these 9 billion XRP?

It is a pity that, perhaps due to the gradual decline of XRP’s market position, among the relevant data sources at home and abroad that are currently available, most of the statistics on Jed’s cash-out value stopped before 2020, and Jed Balance has always existed However, the data source only counts the number of XRP, and does not calculate the corresponding value in combination with real-time prices. So if we want to get an answer to the total cash out value, we need to make an estimate ourselves.

The eight-year sell-off is coming to an end, how much did the former Ripple CTO cash out?

Combined with the above figure and divided by some time points when Jed suspends selling, we can divide Jed selling into three stages: before 2021, January 2021 to September 2021, and January 2022 to the present.

The first is the first stage. Fortunately, Whale Alert once made statistics on Jed’s historical selling behavior at the end of 2020 (for the specific algorithm, you can read the original text for yourself, and I won’t go into details here), and the result is that Jed sold off through this stage. $546 million has been cashed out .

The second stage is the second stage, which is also the period when Jed sold the most. We counted the specific selling quantity of Jed on a monthly basis, and then combined with the median price of XRP in the month to estimate its overall cash-out value, and the result was obtained. The total cash out of Jed for this stage is about 2.1697 billion US dollars , and the specific calculation process is as follows:

The eight-year sell-off is coming to an end, how much did the former Ripple CTO cash out?

The last stage is the third stage. Continuing the calculation method of the previous stage, the result is that Jed has cashed out a total of about 411 million US dollars in this stage . The specific calculation process is as follows:

The eight-year sell-off is coming to an end, how much did the former Ripple CTO cash out?

546 million, 2.1697 billion, 411 million, not to mention the last remaining 17,945,934 XRP in the wallet. In the past eight years of selling, Jed has cashed out a total value of about 3.1267 billion US dollars. It should be noted that this data is derived from the estimation model we set (the number of sales in the month * the median price of the month), and there may be some discrepancies with the actual data, but the deviation should not be too large.

Some friends may ask at this time, with the end of Jed’s “smashing”, is it possible to “rush” XRP? Regarding this operation, I personally strongly do not recommend it. There are three specific reasons:

First of all, from a purely secondary market point of view, Jed’s continued selling has long been one of the important selling pressures on XRP, so the end of the selling can indeed reduce the selling pressure on XRP to a certain extent, but compared with the daily price of XRP With an average trading volume of hundreds of millions of dollars, Jed’s average daily sell-off in recent months has only been in the millions of dollars, so it is worth considering how much this “certain degree” is.

Secondly, the current cryptocurrency market as a whole has not yet stabilized, the cloud of interest rate hikes and balance sheet reductions still exists, and the trauma caused by the liquidity crisis has not yet fully recovered. No one can say for sure what the market will do next.

Last but not least, in the past few years of development and competition, XRP and the concept of “cross-border payments” that it represents are constantly weakening in the narrative. With the advent of the Web3 era, we will continue to falsify some old concepts while proving some new concepts. From the current development trend, Ripple is gradually sliding towards the latter.

Posted by:CoinYuppie,Reprinted with attribution to:
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