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- Jed McCaleb is a co-founder and the CTO of Stellar, he also founded XRP ledger and was the CTO of Ripple until 2013.
- The XRP genesis block created 100 billion XRP out of that 20 billion assigned to the founders and the rest were given to Ripple.
- To protect the market from the massive dump, Ripple formed a deal with McCaleb in 2014 regarding the amount of XRP he could sell.
Jed McCaleb is a co-founder and the CTO of the decentralized network for converting digital currency to fiat currency Stellar. Before that, he founded XRP ledger and was the CTO of Ripple until 2013. XRP Ledger was developed by Jed McCaleb, Arthur Britto, and David Schwartz whereas Chris Larsen was handling the business of the XRP ledger.
Failing out in 2013, McCaleb left Ripple
Later in 2012, Chris Larsen and Jed McCaleb formed a company Ripple which was originally known as OpenCoin. The XRP genesis block created 100 billion XRP out of that 20 billion assigned to the founders and the rest were given to Ripple.
In 2013, McCaleb left Ripple due to its poor performance in the market. During that time, he was holding 9 billion XRP, which he received for establishing Ripple. However, to protect the market from massive dumps, Ripple formed a deal with McCaleb in 2014 regarding the amount of XRP he could sell.
Moreover, McCaleb strikes the deal with Ripple and was alleged in a dispute for some time and also, his family members tried to sell 100 million XRP bypassing the deal with Ripple. This made the leading exchange Bitstamp to freeze that 100 million XRP.
A new deal to donate 2 billion XRP to DAF
A new deal was framed in February 2016 that says McCaleb has to contribute 2 billion XRP to a charitable donor-advised fund (“DAF”) according to his choice. Also, the remaining XRP at the time of settlement (which is approximately 5.3 billion XRP) of McCaleb and his children will be under the custody account at Ripple.
Though McCaleb retains full ownership of his remaining XRP, Ripple will release his XRP as consistent with the settlement agreement.
Since then, McCaleb found that Ripple has been under the control of his XRP, releasing it as per the deal. He holds his XRP under four accounts where the first holds the maximum XRP, the second is used to load third account, and the third to the load the fourth account which is a bitstamp account for sales.
From the past few years, McCaleb sales have been quite constant with an irregular break. The CoinMarketCap (CMC) data indicate the XRP volume of the past few years that depicts there’s been an increase in the volume of XRP since early February.
This is because the more availability and volume increase the sales activity of McCaleb increases. During 2020, McCaleb has sold approximately 1.4 million XRP per day. With this rate, 500 million will be sold in a year that means it will take around 9 years for the XRP to exhaust.
Furthermore, the XRP selling activity of McCaleb is escorted in a synchronized and monitored method to make sure that the price of XRP does not get affected.
