If you are following Ripple over the past year, you probably know that one of the biggest controversies around their coin XRP is that the executives of Ripple Labs own a huge stack of the coin’s supply. In addition to that, Ripple (the company) itself owns billions of these coins.
Fortunately, the company has been selling less and less coins over the past months, opting to maintain their stash, unlocked from an escrow in one-billion-coin chunks each month.
But the risk is still there should company executives decide to start selling off the cryptocurrency, potentially acting as a weight on the supply-demand scale of the asset’s price. Ripple’s co-founder Jed McCaleb (who is also heavily involved in the creation of Stellar and the bankrupted Bitcoin exchange Mt. Gox) allegedly still has over $1 billion worth of XRP to liquidate should he choose to.
There is much debate and speculation on crypto twitter regarding this issue and not surprisingly, the performance of XRP in the past year has been less than impressive. Unlike 2018 when even during the bear market of all crypto, we saw a few good pumps in XRP, especially around September when it peaked at $0.73 and for a moment it was looking like the future belongs to XRP while bitcoin was still struggling in the fight against the bears.
Needless to say XRP is still in -63% correction since that peak and an overall -91% drop from its ATH which was recorded on 1 January 2018.
All in all, I am bullish on XRP since it shows signs of recovery and it’s been in accumulation period for quite some time now, so things should get better from here on but the party can easily be spoilt should those ripple whales decide to start unloading in bulk. We ought to keep a close eye on it and fingers crossed in the hope for the best.