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.
Jed wallet sales had been going on for more than 2 and a half years, up until January 11, 2019. It was reported by XRParcade in February that Jed’s wallets had ceased their selling activity on that date. A lot of speculation started when the XRP community was informed of this development. Some claimed that Jed had struck a new deal with Ripple or some sort of partnership was in the works. However, XRP community member Tiffany Hayden (@haydentiff twitter handle) met with Jed back in May and shed some light on this on xrpchat:
Jed’s inactivity continued up until one of his wallets, the one that is being used to sell his XRP on Bitstamp, was loaded with XRP from the tacostand wallet on June 11th and immediately placed a sell order for the whole amount. The same amount was transferred to Kraken the day before. The selling has continued for all the following days.
As Tiffany mentioned above, we can assume that the charity has stopped selling and so Jed resumed his own sales. We can also assume that during this time, the charity had been selling XRP and was subject to the same limitations as Jed. Whether the charity was selling similar amounts of XRP, is unknown but probable.
Jed’s sales resumed only a week after Ripple announced that it was reducing the amount of its XRP sales by more than half, to less than 10bps, due to wash trading and fake volume reported by exchanges. There is bound to be some speculation connecting the two developments, but we don’t see any evidence that support it. We will continue to follow this story and keep you posted.