Ripple Labs co-founder, Jed McCaleb is said to be in possession of a huge amount of XRP – Ripple’s cryptocurrency coin.
It was reported that he had about 9 billion XRP in 2013 after leaving Ripple Labs as payment for establishing the company, Ripple Labs.
Breach of Contract
It was reported that in 2014, a deal between Ripple Labs and Jed was established to control how much XRP Jed was allowed to sell. This was done with the intention of shielding the market from considerably large dumps that could potentially destabilise it.
The Jed account that was selling 1m+ $XRP per day stopped selling on January 11. The other wallets are also inactive, for now.
— Leonidas Hadjiloizou (@LeoHadjiloizou) February 4, 2019
However, McCaleb did not honour the deal and was consequently in bit of a legal tussle with the company for quite a bit. In fact, it was reported that about a hundred million XRP purportedly owned by members of Jed’s family, was blocked when said family members tried to sell them, sidestepping the details of the contract.
A New Agreement
However, about two years after the initial deal was struck, another one was established. The new one had the following vital parts:
- There has to be a mandatory donation of 2 billion XRP to any charity DAF (Donor Advised Fund) he so chooses. However, the limits set on his freedom to sell the XRP are the same as that set on the charity’s freedom to do same.
- About 5.3 billion XRP which constitutes the rest of the funds will compulsorily stay with Ripple. This amount is the sum total of XRP owned by McCaleb along with those of his children. Also, Ripple Labs will regulate the discharge and sale of Jed’s XRP as stated in the contract.
- Particular details reveal that he will only be permitted to dispose the residual in a specific manner. Over the first year of the deal, the DAF along with McCaleb will only be able to jointly sell 0.5 percent of the Average Daily Volume of XRP for one day including weekends and holidays.The second and third years however, will allow a collective sale of 0.75 percent of the Average Daily Volume. For the fourth year, they will collectively be able to sell 1.0 percent on each day, of the Average Daily Volume. Finally, after the fourth year, the collective sale permitted by the deal for both Jed and the DAF will be 1.5 percent of the Average Daily Volume.
Since the agreement was concluded, Ripple has been regulating the sale of McCaleb’s XRP in line with the terms of the agreement.
Possible Change in Deal
It does seem, however, that there has been some activity on the account that may not reflect the terms of the deal. Through Bitstamp, quite a bit of XRP has been sold and a lot of people have expressed their surprise as to whether or not a new deal was stuck.
This has spiked interest in Jed’s XRP addresses and will now be monitor thoroughly observed for more activity or information.