Jed McCaleb, one of the founders of Ripple Labs (currently the CTO of Stellar), has been known to hold a huge amount of XRP.
After leaving Ripple in 2013 he was holding 9 billion XRP, the amount he received for founding Ripple Labs. 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 the Jed’s ability to sell his remaining XRP.
- All of Jed and his children’s remaining XRP, approximately 5.3 billion XRP, 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.
Ripple has been in control of Jed’s XRP since then, releasing it according to the deal. His XRP have been held in 4 accounts that we know off. The large one (rDbWJ9C7uExThZYAwV8m6LsZ5YSX3sa6US, currently 4.668 billion XRP), the medium one, used to load the small one (r4LxkCUXYTCUgwquN3BnsUxFacoVLjGFyF, currently 75 million XRP) and the small one, used to load a bitstamp account for sales (rEhKZcz5Ndjm9BzZmmKrtvhXPnSWByssDv, currently at 69 million). This leaves the last account, the one being used to sell to Bistamp (rLkMJhSVwhmummLjJPVrwQRZZYiYQhVQ1A). Every day since April 15th, 2016, a large amount of XRP was being sold through Bitstamp, in an automatic fashion.
This has been going on for more than 2 and a half years, until January 11th. On January 11th the last sale on this account occured.
A few days later, on January 22nd, the rest of the XRP in this account were also moved. Bearing in mind that Ripple is in control of his XRP according to the deal and that sales were done in an automatic way, it makes one wonder whether a new deal was agreed or did Jed request for the sales to stop? One thing is for sure, the addresses that hold Jed’s XRP will be closely monitored by the community until more details become public or there is movement again.