An Insight into XRP Sales by Ripple Executives

Ripple and its executives have been gradually selling off XRP in the open market for over ten years. Since XRP was fully created at its launch, every token that has been sold comes from a predetermined and finite supply. By comparing the original allocations from 2012 with current blockchain holdings, we can now estimate how much XRP Ripple and its executives have disposed of to date.

Key Takeaways

Ripple and executives have sold 58.515 billion XRP since its launch in 2012.
XRP has a fixed supply of 100 billion, with no mining or inflation involved.
Ripple holds about 37.685 billion XRP, with 34.185 billion in escrow.
XRP’s price has increased by approximately 31,756% since 2013, currently trading around $1.88.
The selling of XRP has taken place alongside various market developments and legal issues without significantly affecting its long-term growth.

XRP

XRP Allocation and Distribution Overview

XRP was introduced in 2012 with a fixed total supply of 100 billion tokens, all generated simultaneously on the XRP Ledger. Unlike many cryptocurrencies, there has been no process of mining, staking, or inflation. Out of the total supply, 80 billion XRP were allocated to what later became Ripple, while the remaining 20 billion were designated for founders and early insiders. Key figures at the time of launch included Jed McCaleb, Arthur Britto, and David Schwartz.

Fast forward to today, and Ripple and its executives hold a total of about 41.485 billion XRP. Ripple itself controls roughly 37.685 billion XRP, which is divided into 3.5 billion XRP that are readily accessible and 34.185 billion XRP that are securely held in escrow. Among the executives, Chris Larsen, the chairman of Ripple, has around 2.5 billion XRP distributed across eight wallets, while Arthur Britto possesses about 1.3 billion XRP across seven wallets. David Schwartz, a co-founder, has a considerably smaller holding, which reached a historical peak of around 26 million XRP, significantly lower than the multi-billion amounts held by others.

When we subtract current holdings from the original allocations, it appears that Ripple and its executives have sold or allocated roughly 58.515 billion XRP since the inception of the cryptocurrency.

Implications of XRP Sales on Market Price

The volume of these sales often raises important questions regarding potential long-term price pressure. However, timing is a crucial aspect to consider. The earliest recorded market price of XRP was about $0.00587 in August 2013. As of now, it is trading around $1.88, reflecting an impressive increase of roughly 31,756% during this time.

These gains occurred even as billions of XRP were gradually introduced into circulation, rather than all at once. In 2017, Ripple established an escrow system that secured 55 billion XRP, permitting up to 1 billion XRP to be released monthly. Any XRP that goes unused is returned to escrow, effectively minimizing unexpected supply surpluses. Currently, 34.185 billion XRP remain locked in this escrow system.

Over the course of 13 years, the 58.515 billion XRP that have been sold would equate to approximately $109 billion at present prices. These sales took place during a period marked by the ongoing development of the ecosystem, legal challenges, and various market cycles, demonstrating that the distribution of XRP has been managed carefully and in phases.

In summary, while Ripple and its executives have released a considerable amount of their holdings, their cautious and escrow-managed approach throughout the years aligns with an overall appreciation in XRP’s market value. This indicates that their strategic, phased selling strategy has not hindered the long-term growth of XRP.

XRP price chart from Tradingview.com
Bulls pushing for another uptrend | Source: XRPUSDT on Tradingview.com