Jed McCaleb, co-founder and the CTO of Stellar Development Foundation, the company behind the development of the Stellar(XLM) blockchain, was also co-founder of Ripple Labs Inc before going all in with his current project. At the time of leaving Ripple, the company paid him an amount of 5.3 Billion XRP. According to reports published in the Wall Street Journal , the well-known entrepreneur may be accelerating the sale of his remaining tokens.
Mr. McCaleb had reached an agreement in which it was stated that the sales of such tokens should be controlled in order to avoid a collapse in the market. The initial agreement , which was later revised in 2016 set the following limits:
- $10,000 per week during the first year
- 20,000 per week during the second, third and fourth years
- 750 million XRP per year for the fifth and sixth years
- 1 billion XRP per year for the seventh year
- 2 billion XRP per year after the seventh year
Apparently, at the time of evaluating the data available from his financial operations, Mr. McCaleb reportedly increased his sales by more than 10x compared to July:
“In July, Mr. McCaleb was selling 20,000 to 40,000 XRP a day. However, starting in August, according to a public clearinghouse of token trades, he started selling 499,312 XRP a day, and at one point sold 752,076 a day. In other words, each day he moved and sold about 35 times the limit outlined in his 2016 agreement with Ripple. For example, over six days ending Wednesday, Mr. McCaleb sold more than 500,000 XRP a day, or about $150,000.”
Can McCaleb Go Against Ripple?
It is important to note that while McCaleb has legal ownership of each of the XRPs, the agreement states that Ripple has full custody of said tokens, and only releases them according to McCaleb’s will as long as the agreed terms are met.
This implies that it is highly unlikely that the man behind Stellar is violating the terms of the agreement with Ripple or that he has exceeded his powers in any way. Much less is he acting against or without the consent of Ripple Labs Inc.
As a matter of fact, David Schwartz, Ripple’s CTO; explains that McCaleb cannot sell extreme amounts of XRP even if he wants to:
Jed tried to dump his XRP quickly and Ripple acted to stop him through a series of lawsuits. Thanks to Ripple’s refusal, Jed’s XRP will probably be worth more than $1 billion. He will probably be the only person to become a self-made billionaire despite his best efforts.
According to the Wall Street Journal, the Ripple Labs team in San Francisco refused to comment on this. After being contacted via email by WSJ, Mr. McCaleb just said:
“I’m not selling more than I have agreed to with Ripple,”.