Ripple Sends 100 Million XRP to Stellar’s Jed McCaleb and the Community Isn’t Happy
It seems that everything is worse during bad times, and Ripple’s latest move has unleashed the wrath of the XRP Army… again.
An alert issued by the Twitter account “Whale Alert” noted that on September 7, Ripple sent 100 million XRP to Jed McCaleb, founder of Stellar and former founding member of Ripple.
? ? 100,000,000 #XRP (26,322,440 USD) transferred from Ripple to Jed McCaleb wallet
Tx: https://t.co/z0hfij5kmE
— Whale Alert (@whale_alert) September 7, 2019
The XRP Army Isn’t Having It
The so-called XRP Army was not exactly happy about this news. Community members have rebelled, expressing frustration towards Ripple and its massive sales of XRP, blaming it for its role in the token’s bear trend.
XRP has never been the cryptoverse’s cup of tea. Opposition toward this digital currency is widespread, especially among purists and maximalists who view the token as contrary to what a cryptocurrency should be.
However, what is surprising is the level of repudiation within the community. The famous XRP Army is known to be a very closed and united group — and an overly bullish one, might we add.
The furor of the XRP Army began to spread when Crypto Bitlord initiated a Change.org petition meant to stop Ripple from “dumping billions of XRP”, which allegedly caused the market to crash.
It’s worth noting that Ripple is the only cryptocurrency in the top 10 to have exhibited a negative year-to-date price performance, which is perhaps also something that the community is struggling with.
It Will Keep Happening
Although Ripple has consciously decided to dump its own XRP token, the truth is that such transfers are inevitable.
After Jed McCaleb left Ripple, the company signed an agreement allowing it to periodically transfer XRP to a wallet owned by McCaleb in exchange for his contributions to the project.
But fear not. The agreement also prevents McCaleb from simply dumping XRP. Among other restrictions, the leader of Stellar (XLM) cannot sell:
- $10,000 worth of tokens per week during the first year
- $20,000 worth of tokens per week during the second, third and fourth years
- 750 million XRP per year during the fifth and sixth years
- 1 billion XRP per year during the seventh year
- 2 billion XRP per year after the seventh year
So, perhaps the XRP Army can be more confident in the way in which Stellar handles XRP than in Ripple’s way of doing business.
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