The XRP price dip below $0.60 means the personal fortune for one of Ripple’s co-founders has decreased by nearly 85% since the start of the year.
At around 5:00 am GMT on Tuesday morning, the price of XRP was $0.59, the lowest value the coin had been since the 14th of December. The coin, which since Wednesday has steadied at around $0.75, reached a record value of $3.84 on the 4th of January 2018, meaning that in little more than a month, the coin’s value has collapsed by 80%.
This represents a significant decrease in the personal fortunes of Chris Larsen, one of the co-founders of Ripple. The value of Larsen’s 5.19bn XRP tokens was once estimated to be just under $20bn, or more exactly, 19,929,600,000. However, by 5:00 am Tuesday morning, his XRP stash was worth 3,062,100,000 – a near 17bn drop in his personal wealth. Following Wednesday’s pairing of XRP to roughly $0.75, his fortune would roughly be worth somewhere in the region of 3,892,500,000, which still represents an 80% decline in his personal fortunes.
Larsen, who stood down as the company’s CEO in November 2016, is now Ripple’s executive chairman. He co-founded the present incarnation of Ripple along with Jed McCaleb back in 2011. According to a recent blog post by the Bitmex research team, Larsen received 9.5bn XRP following its launch in January 2013: McCaleb also received 9.5bn.
According to Bitmex, a 2014 agreement signed by the co-founders restricted the sale of XRP to prevent a massive drop in value following a possible dump. The cryptocurrency’s 36,000% increase in value in 2017 made it one of the best performing digital assets for 2017.
A spokesperson from Ripple referred to the centralisation of Ripple and provided a link to a Twitter spat between the Bitmex research team and David Schwartz, the chief cryptographer at Ripple and one of the original architects of the XRP.
However, they did not offer a reply to our questions on the concentration of Ripple tokens with the founders.
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