XRP is the third-largest cryptocurrency after Bitcoin and Ethereum. Billions of dollars worth of XRP are traded every single day for a very long time. We are in an uptrend and this uptrend is accompanied by good volume as well. It is pretty normal in crypto, whenever there is a pump or dump, the volume is high while it is low when there is sideways action.
Source
You might be wondering why am I talking about the volume when the title of the post says something else! Well, there is a correlation between the title and the volume of XRP. According to Decrypta.co, there has been an increase of 266% in XRP dumps by Jed McCaleb, co-founder of Ripple. The reason for this increase has been the rising trading volume of XRP.
Again, this raises the question "Why is the co-founder of Ripple selling XRP?"
It is because he parted ways with Ripple and took 9 billion XRP with him as his share. He has been dumping XRP since then every day. He revised his agreement of selling a certain amount of XRP daily to dumping a percentage of XRP's daily volume and with a significant increase in the volume of XRP this year, he has been able to sell $374,200 per day.
The whole point of writing this post is to make you understand what happens in a centralized chain. It may not happen with other centralized blockchains out there but this is something that you should consider. McCaleb had an agreement with other founders and he couldn't sell beyond a limit but there may not be an agreement on every chain.
I am not saying that you should abandon all the centralized projects, there are good ones as well, like ChainLink. Despite, being highly centralized, it is still one of my most favorite projects. But a slight caution is required when it comes to investing in centralized coins.
Let's say there is a chain " X" which has 100 million tokens in supply and the team controls 30% of the supply. Now if the price rises significantly and the team decides to dump their tokens and leave the project. Selling 30% of the total supply will crash the price and you will end up losing your invested money.
This is why we should advocate and push for decentralization so that nothing like this happens. Bitcoin is the most decentralized crypto and this is why it is considered the safest heaven in the entire crypto land.
Also if you are still interested in any centralized coin, please only invest what you can afford to lose and always be careful with those coins.
This is not financial advice. These are personal thoughts and they are meant for information purposes only.DYOR before investing.
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Thank you so much for the useful information and guide, I am usually very skeptical about centralized system also.
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Really nice update. A lot happening in the space recently. And like you said, it is very important for anyone who wants to venture into any coin t do lots of research and to only invest what you can afford to lose.
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I have responded to this comment already.
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ripple is one of the biggest 'money grabs' ever in the crypto space. cant seem to understand why it holds much value
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It is holding value because for every seller, there is a buyer.
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@syedumair xrp was one of my favourite currency in 2017-18 but I slowly dump all and move to other coin as I waited long back to get it pumped but it is not pumped. It has potential but don't know why it is not pumping
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Although the amount that is being dumped by McCaleb isn't huge but I believe that it has had a negative impact on the price of XRP.
The price of XRP will increase and I think it will touch previous ATH in this bull market.
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If he is dumping that much per day, well I can't blame him because I think he must find a way of selling his coin out
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Nobody is blaming McCaleb. The blame lies with centralized chains.
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dumping that amount of xrp will really have great effect on the token for the main time, is not really a good thing since they have an agreement.
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Yes.
Also, it means that XRP will be in more wallets than before, so it is a good thing for XRP holders.
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