Jed McCaleb, XRPL co-founder, and former Ripple CTO has increased his XRP sales, reaching a new all-time high of 6,180,850 XRP per day.

Jed, the XRPL and Ripple

Jed McCaleb is an American programmer and entrepreneur. He is a co-founder and the CTO of Stellar. Prior to co-founding Stellar, McCaleb co-founded the XRP ledger and served as the CTO of Ripple until 2013.

The initial architects of the XRP Ledger were Jed McCaleb, Arthur Britto, and David Schwartz. A few iterations in they approached Chris Larsen to handle the business side of things. Chris Larsen and Jed McCaleb formed Ripple the company in 2012, originally called OpenCoin. Out of the 100 billion XRP that were created at the XRP genesis block 20 billion went to the founders of XRP and the rest were given to Ripple to manage.

Falling out

After a falling out McCaleb left Ripple in 2013. At the time, he was holding 9 billion XRP, the amount he received for founding the XRPL. In 2014, Ripple struck a deal with Jed in regards to the amount of XRP he could sell, in order to protect the market from huge dumps.

Jed allegedly broke the terms of the deal and was involved in a legal dispute with Ripple for a while. Bitstamp froze 100 million XRP that family members of Jed allegedly tried to sell circumventing the deal with Ripple.

In February 2016, a new deal was struck. The key points of the deal were:

  • Jed will donate 2 billion XRP to a charitable donor-advised fund (“DAF”) of his choice. The same limits are placed on the ability of the charity to sell the XRP as are placed on Jed’s ability to sell his remaining XRP.
  • All of Jed and his children’s remaining XRP, approximately 5.3 billion XRP (at the time of the settlement), will be placed in a custody account at Ripple. While Jed retains full title and ownership of his remaining XRP, Ripple will control the release of his XRP in a manner consistent with the settlement agreement. Specifically, Jed will be allowed to sell his remaining XRP in the following manner: – for the first year of the agreement, Jed and the DAF will be able to collectively sell 0.5 percent of the Average Daily Volume of XRP for each day of the week, including weekends and holidays. – for the second and third years of this agreement, Jed and the DAF will be able to collectively sell for each day of the week 0.75 percent of the Average Daily Volume. – for the fourth year of the agreement, Jed and the DAF will be able to collectively sell for each day of the week 1.0 percent of the Average Daily Volume. – for any time after the fourth year of the agreement, for each day of the week, Jed and the DAF will be able to sell 1.5 percent of the Average Daily Volume.

McCaleb claimed that that was a victory for him. Ripple has been in control of Jed’s XRP since then, releasing it according to the deal. His XRP has been held in 4 accounts that we know off. The first one holds the most XRP. The second one is used to load the third. The third one is used to load a Bitstamp account for sales (the fourth account).

WalletAddressBalance
1 rDbWJ9C7uExThZYAwV8m6LsZ5YSX3sa6US 4.193B
2 r4LxkCUXYTCUgwquN3BnsUxFacoVLjGFyF 30
3 rEhKZcz5Ndjm9BzZmmKrtvhXPnSWByssDv 29.722M
4 rLkMJhSVwhmummLjJPVrwQRZZYiYQhVQ1A25

Jed’s sales get executed on the XRPL DEX (decentralized exchange) and usually, the same amount of XRP gets sold all through the week, from Sunday to Saturday.

Jed’s selling activity

Jed’s sales have been pretty consistent the past few years with the occasional break. A pause of selling in 2019 for 5 months was allegedly made to allow for the charitable DAF to sell XRP instead of Jed.

However, after February 2020, Jed’s sales have increased because the fourth year after the deal had passed, thus increasing the percentage Jed was allowed to sell to 1.5% of the average daily volume.

Since February Jed’s sales have increased drastically. Jed has sold an average of 1,862,383 XRP per day in 2020, almost four times as much as compared to 2019, 481,950 XRP per day.

YearTotal Sales (XRP)Average Daily Sales (XRP)
2018126,321,930.15346,087.48
2019175,912,023.60481,950.75
2020426,485,827.961,862,383.53

It is worth noting, however, that even though Jed’s sale rate has quadrupled, it doesn’t seem to have an effect on the digital asset’s price. Even at times when Jed’s selling activity increases, XRP’s price seems to be unaffected.

Assuming that Jed continues to sell 1.862 million XRP per day, it is going to take more than six years for his 4.223 billion XRP to get depleted. On the other hand, if he continues to sell 6.180 million XRP per day, it is going to take less than two years to run out of XRP.

Whatever the case, Jed’s selling activity is conducted in a coordinated and monitored way and the sooner the funds get depleted, the better for XRP.

Categories: Jed McCaleb