<p>Since there has been recent news about <strong>Jed McCaleb and his XRP</strong> contract, this article was written to provide an overview of the link between XRP and McCaleb. It will feature a brief history of McCaleb and Ripple as a whole, a comparison between Ripple and Stellar as well as a look into Jed's XRP selling contract and a prediction of XRP price.</p><h2>The company behind XRP</h2><p>The firm that created XRP is called Ripple, and it operates a global currency exchange network and payment settlement system.</p><p>Ripple was created from the start to effectively be a SWIFT successor. It acts as a trusted intermediary between two parties in a transaction because the network can rapidly verify that the transaction was successful. Ripple can help with exchanges for many different fiat currencies and cryptocurrencies, such, for instance, Bitcoin. Every time a user uses the network to conduct a transaction, the network deducts a tiny sum of the cryptocurrency XRP as a charge.</p><h2>Jed McCaleb and the foundation of Ripple</h2><p>In 2012, Jed McCaleb and Chris Larsen co-founded OpenCoin, which was later renamed Ripple. In March 2011, McCaleb had just sold the now-defunct MT Gox. McCaleb was in need of a new cryptocurrency project, and when Opencoin was founded, they both received XRP as a result of creating the project.</p><p>Together with current CTO David Schwartz, who formerly worked with the NSA on integration projects, Jed McCaleb built the consensus network. McCaleb also succeeded in persuading Jesse Powell, the CEO of Kraken, to invest in Ripple in 2012. With the support of Jesse Powell, the team was complete with David Schwartz, Chris Larsen, and Jed McCaleb.</p><p>In January 2013, Ripple launched its XRP cryptocurrency. XRP is a cryptocurrency that is powered by the XRP Ledger. You can buy XRP as an investment, as a cryptocurrency to swap for other cryptocurrencies, or to fund transactions on the Ripple network.</p><p>Notably, XRP's blockchain works slightly differently from that of most other cryptocurrencies. Other cryptocurrencies make their transaction ledgers and verification methods available to anyone who can swiftly solve difficult equations. Transactions are secure, however, because the majority of ledger holders must agree to the verification in order for them to be added.</p><p>The Ripple network, which runs on XRP, uses a consensus system and partially centralizes things: Anyone can download its validation software, but it also keeps a list of distinct nodes from which users can choose the ones they believe are least likely to deceive them in order to validate their transactions. Perhaps Ripple intended for XRP to be used in conjunction with the web of trust framework for USD payments, such as to pay transaction fees. Some people believed that by setting the supply of XRP at a high level of 100 billion, Ripple would be able to avoid a significant price increase. The XRP cryptocurrency was criticized for possibly not being a required part of the network</p><p></p><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed0f26aece418ba8e6023f659fee92.jpg" alt="Jed McCaleb and the foundation of Ripple" title="Jed McCaleb and the foundation of Ripple" width="600" height="400"></p><p class="prosemirror-p-center"><em>Source: XRP</em></p><p>From Google Ventures, Andreessen Horowitz, IDG Capital Partners, FF Angel, Lightspeed Venture Partners, the Bitcoin Opportunity Fund, and Vast Ventures, OpenCoin secured $1.5 million in investment in April 2013. Some of the most reputable venture capital companies in the world participated in this round of venture funding, which was the first of many.</p><p>At some point between June 2013 and May 2014, McCaleb left Ripple. Although it seems like the Ripple community just started talking about his leaving in earnest in May 2014, later statements from the firm show he stopped being involved in June 2013, when Stefan Thomas took over as CTO.</p><h2>The cause and the consequence of Jed’s departure</h2><h3>Why Jed left Ripple</h3><p>The main reason McCaleb left Ripple was that the company's board of directors did not adopt his ideas. Chris Larsen and McCaleb had extremely different perspectives on the future of XRP. McCaleb had a big proposal for Ripple to host a Facebook giveaway for XRP, but the board of directors of Ripple rejected it. Thus, a Facebook giveaway was one of the first initiatives McCaleb took when he established Stellar. McCaleb was now liberated to carry out his own desires after departing and founding his own coin. The Facebook offer did, however, lead to issues for Stellar later on, with a risky phishing fraud on Facebook in the early months of 2018.</p><h3>The consequence of the departure</h3><p>At the time of its founding, Ripple issued 100 billion XRP tokens, of which 80 billion were donated to the business and 20 billion to the three founders. An estimated breakdown of how the tokens were distributed is provided below:</p><ul><li><p>Eighty billion XRP were given to the Ripple firm.</p></li><li><p>9.5 billion were given to Chris Larsen. Of this 9.0 billion XRP, Larsen promised to donate 7 billion to a charitable foundation in 2014.</p></li><li><p>9.5 billion were given to Jed McCaleb. When McCaleb left Ripple, he kept 6.0 billion (subject to the lock-up agreement). McCaleb's kids received 2.0 billion(subject to lock up agreement). 1.5 billion was donated to charities and other McCaleb family members (not subject to lock up agreement).</p></li><li><p>Arthur Britto was compensated $1 billion (subject to the lock-up agreement).</p></li></ul><p>There were worries McCaleb would dump his XRP onto the market and cause a price crash when he departed Ripple. By limiting the selling of XRP, McCaleb and Ripple created the following agreement to stop this. After McCaleb was accused of breaking the original terms by Ripple, the agreement was updated in 2016.</p><p></p><table><tbody><tr><td data-colwidth="443" style="background-color: #f9cf2e;"><p class="prosemirror-p-center"><strong>The 2014 agreement</strong></p></td><td style="background-color: #f9cf2e;"><p class="prosemirror-p-center"><strong>The 2016 agreement</strong></p></td></tr><tr><td data-colwidth="443" style="background-color: [object Object];"><p>Year 1: McCaleb's sales are capped at $10,000 per week</p><p>Year 2+3+4: Sales are capped at $20,000 per week</p><p>Year 5+6: Sales are capped at 750 million XRP per year</p><p>Year 7: Sales are capped at 1 billion per year</p><p>Year 8+: Sale are capped at 2 billion per year</p></td><td style="background-color: [object Object];"><p>Year 1: McCaleb needs to give 2 billion XRP to good causes.Ripple will have power over the 5.3 billion XRP, but McCaleb must maintain title ownership.McCaleb and the charity can jointly sell 0.5% of the holding</p><p>Year 2+3: McCaleb and the charity can jointly sell 0.75% of the holding each year</p><p>Year 4: McCaleb and the charity can jointly sell 1% of the holding</p><p>Year 5+: McCaleb and the charity can jointly sell 1.5% of the holding each year</p></td></tr></tbody></table><p><br></p><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed0f26aece48a0a8e6023f659fee92.jpg" alt="The consequence of the departure" title="The consequence of the departure" width="600" height="338"></p><p class="prosemirror-p-center"><em>Source: TheCoinRepublic</em></p><h3>Ripple versus Stellar</h3><h4>Similarities between Ripple and Stellar</h4><ul><li><p>They both use distributed ledger technology</p></li><li><p>Neither allows mining since they both have private nodes.</p></li><li><p>Transactions are quick and nearly free, making them ideal for international transfers and payments</p></li></ul><h4>Differences between Ripple and Stellar</h4><p></p><table><tbody><tr><td style="background-color: #f9cf2e;"><p class="prosemirror-p-center"><strong>XRP (Ripple)</strong></p></td><td style="background-color: #f9cf2e;"><p class="prosemirror-p-center"><strong>XLM (Stellar)</strong></p></td></tr><tr><td style="background-color: [object Object];"><p>Algorithm: Defaltionary</p></td><td style="background-color: [object Object];"><p>Algorithm: Inflationary</p></td></tr><tr><td style="background-color: [object Object];"><p>More centralized</p></td><td style="background-color: [object Object];"><p>More decentralized</p></td></tr><tr><td style="background-color: [object Object];"><p>Target&nbsp; market: Ripple is primarily aimed for banks. After all, banks have a wide market and can bring in a lot of money.</p></td><td style="background-color: [object Object];"><p>Target market: Stellar focuses on individuals, particularly those from less-developed countries, allowing unbanked people to interact with the market on a global scale. As a result, Stellar prefers to refer to itself as "not for profit."</p></td></tr><tr><td style="background-color: [object Object];"><p>Ripple team and capital is huge because of their target market</p></td><td style="background-color: [object Object];"><p>Stellar team and capital is much smaller although they have experienced people on their team</p></td></tr></tbody></table><h2>The dump came to an end</h2><p>Only 46.7 XRP remains in Jed McCaleb's infamous "tacostand" wallet after an eight-year dump of his Ripple (XRP) holdings.</p><p>According to blockchain explorer XRP Scan, the former founder of Ripple sent out his final transfer of 1.1 million XRP, valued at $394,742.18, at 6:31 AM UTC on SundayThe account showed an "ACCOUNT DELETE" transaction a few hours later, indicating that it will be deleted from XRP's ledger.</p><p>The transaction completes a 9 billion XRP sell-off McCaleb started in 2014 after leaving Ripple Labs to co-found the competing Stellar payment technology.</p><p>The amount McCaleb has released over the past eight years accounts for roughly 18.6% of the total quantity of XRP in circulation, which has been viewed as positive news.</p><h2>XRP price prediction</h2><p>Some people have accused McCaleb of depressing the XRP price through his long-running sales. The crypto researcher, Leonidas Hadjiloizou, is not convinced.</p><p>"I've been looking at Jed's sales for a while now. "I've never found a pricing correlation," he tweeted. In response to Hadjiloizou, one user stated:</p><p>"This has always cast a large shadow on XRP and its potential, and the pressure has always been in one direction, down." However, the greater distribution is really excellent for the project's future, and it will gain in value after this and the legal issue are completed."</p><p>On the other hand, analysts at FXStreet have assessed the XRP price movement and discovered the positive potential in the altcoin. Analysts observe that the XRP price has been locked below a descending trend line since May 13, although this is expected to change. The XRP price trend has a similar structure to ENS, and after creating higher lows, XRP is poised to break out.</p><p>However, these speculations are not financial advice. Builder.news always encourages you to DYOR and make your own financial decisions.</p><div class="pr-block-special"><strong>Disclaimer:</strong><br>This article is intended for and only to be used for reference purposes only. No such information provided constitutes advice or a recommendation that any investment or trading strategy is suitable for any specific name.</div>

An overview of the link between XRP and McCale, brief history of McCaleb and Ripple as a whole, a comparison between Ripple and Stellar as well as a look into Jed's XRP selling contract.

XRP and Jed Mccaleb: A crypto Divorce