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Ripple Investors Stunned As 40 Million XRP Coins Move To Former Creator Jed McCaleb


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https://bitcoinexchangeguide.com/ripple-investors-stunned-as-40-million-xrp-coins-move-to-former-creator-jed-mccaleb/

Transaction Type: Payment
Amount: 40,987,588.71 XRP
Fee: 12 drops (0.000012 XRP)
Sender: r4LxkCUXYTCUgwquN3BnsUxFacoVLjGFyF
Sender Balance: 131,004,258.994122
Receiver: rEhKZcz5Ndjm9BzZmmKrtvhXPnSWByssDv
Receiver Balance: 69,689,385.871455
Link: https://t.co/tBIi1KlTrw

— XRPL Monitor (@XRPL_Monitor) November 7, 2018

 

"...Many XRP investors are probably familiar with Jed McCaleb, considering he was formerly an executive for Ripple. No one really knows why he received such a high amount, but there are suggestions that the co-founders are working on something new.

No sooner than the funds went through, the Ripple community started chatting on the two factors that stood out the most – the uniqueness of the transaction and the high amount of XRP it uses. The transaction cost less than a penny, and it did not take long for a user to identify the wallet as McCaleb’s. Another user suggested that this action is a pump and dump scheme.

There are plenty of reasons that this transaction could have taken place. Some suggested that it could be for a new Ripple venture, while others believed that it could be a way to show how little their cost is. So far, there are only theories and facts, and the facts are pretty straightforward.

The receiver is, in fact, Jed McCaleb, current owner of Stellar, creator of the Mt. Gox exchange, and former executive for Ripple. Sources believe that the sender is Ripple itself, though the question still remains – why are these two co-founders exchanging funds? Funnily enough, it is not the first time. Three months ago, another $2.3 billion in XRP was moved between the two parties...."

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Well. This is nothing new. Just check the transaction history of the involved wallets. "tacostand" just received some more XRP. This happens from time to time when his account has not many XRP left. He has a daily allowance and is bound by a contract everyone should be familiar with.

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It's noteworthy that the average transaction in the past was about ~5M. This one is unusual and i supect Ripple and/or Jed expect a lot of volume soon, so he'd still be able to sell his XRP with respect to his daily allowance

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19 minutes ago, silly_ann said:

It's noteworthy that the average transaction in the past was about ~5M. This one is unusual and i supect Ripple and/or Jed expect a lot of volume soon, so he'd still be able to sell his XRP with respect to his daily allowance

The volume he gets is backward-looking, not forward.

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from https://forum.ripple.com/viewtopic.php?f=1&t=15885

Quote

The following are the key points of the new agreement:

Ripple will release any claim it has on the funds currently deposited with the federal District Court for the Northern District of California and Stellar will take possession of these funds.

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.

We at Ripple are pleased with the outcome of this agreement. It provides predictability and clarity about distribution of the largest individual holding of XRP in a way that fosters good health and growth in the Ripple ecosystem.

*Under the settlement agreement, Average Daily Trading Volume is calculated by dividing the Weekly XRP Trade Volume for the week that commenced two weeks prior to the week at issue by seven (7). Weekly XRP Trade Volume is defined as the total amount of XRP traded on the Ripple consensus ledger during a given week between Sunday midnight Pacific Time through the following Sunday midnight Pacific Time. Significantly, this definition excludes XRP traded on third party exchanges, unless in Ripple's reasonable judgment, the XRP market has changed so that the majority of legitimate XRP transactions have occurred off the Ripple consensus ledger during the prior 365 days.

 

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8 minutes ago, PunishmentOfLuxury said:

The volume he gets is backward-looking, not forward.

We had record volumes from Nov. 17 to Mar. 18 and this were the transactions:

grafik.thumb.png.640e8ed6441ada89bc8e45425ca4c4aa.png

I agree that we had some volume in Sept. and Oct. but not as nearly as we had back then. Now he got almost 41M in a single transaction. Your answer doensn't explain this phenomenon to me

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20 minutes ago, silly_ann said:

We had record volumes from Nov. 17 to Mar. 18 and this were the transactions:

grafik.thumb.png.640e8ed6441ada89bc8e45425ca4c4aa.png

I agree that we had some volume in Sept. and Oct. but not as nearly as we had back then. Now he got almost 41M in a single transaction. Your answer doensn't explain this phenomenon to me

I wasn't trying to explain the 41M, I was pointing out that as per the agreement the distribution to Jed doesn't anticipate future volumes, as you were speculating.

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2 hours ago, silly_ann said:

I agree that we had some volume in Sept. and Oct. but not as nearly as we had back then. Now he got almost 41M in a single transaction. Your answer doensn't explain this phenomenon to me

Ripple is funding the account monthly and after looking through some historical data the balance was always around 50-70M XRP since the early 2017 bull run. Until september 2018 the balance was consistently above 60M XRP. In october it dropped to ~50M XRP. In november even to ~30M XRP. So they re-charged the account and it currently holds ~69M XRP again. Looks like they wanted to keep it in this range to make sure that Jed always has enough XRP available. Additionally they are most likely monitoring his activities closely to make sure that he does not sell more on a single day than he is allowed to.

2 hours ago, xrpmeplease said:

I would be stunned to find out that Jed received anything more than he is legally entitled to pursuant to his agreement with Ripple...that would be stunning

Of course he receives more than he is allowed to sell, but if he sells more he violates the agreement and I'm pretty sure that his agreement also involves some paragraphs that deal with one party or the other violating the agreement.

2 hours ago, PunishmentOfLuxury said:

I wasn't trying to explain the 41M, I was pointing out that as per the agreement the distribution to Jed doesn't anticipate future volumes, as you were speculating.

I think to a certain degree it has to anticipate future volumes (at least with the current monthly funding schedule). Ripple has to make sure that Jed always has enough XRP to sell, otherwise they violate the agreement.

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I have been an investor in XRP since 2017 and have been well aware of Jed, this is nothing new.  NOT STUNNED AT ALL. I am led to believe that Jed is still working with Ripple. Ripple may even merge with Stellar in the future who knows.... At the end of the day Jed selling is actually doing Ripple a favor by distributing XRP. I would not doubt it if most of my wallet is filled with coins from Jed... THANK YOU Jed :)

Edited by XRPJoe
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39 minutes ago, aavkk said:

great analysis, thanks @DavyJones

Thanks. There are certainly some more interesting points one could pull out of the ledger data. Did anyone know for example that Ripple moved Jed's zerps to a multi signature account in august this year?

However, I just made some requests to the data api to check the historical balances and transactions. Basically Ripple funds Jed's account "tacostand". He regularly sends some XRP from there to another account, from where he buys Bitstamp USD IOUs. These IOUs are sent to Bitstamp afterwards where he most likely cashes out.

A deeper dive could involve pulling transactions / balances for the selling account. It's all there, but I'm currently not interested enough. Jed is just doing his thing. Interesting would be what happens when he violates the agreement (again) and dumps all XRP from his tacostand account in one big fat sell order or something silly like this. This would most likely trigger an alarm at Ripple HQ and they may enforce whatever else is written in the agreement.

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3 hours ago, XRPJoe said:

I have been an investor in XRP since 2017 and have been well aware of Jeb, this is nothing new.  NOT STUNNED AT ALL. I am led to believe that Jeb is still working with Ripple. Ripple may even merge with Stellar in the future who knows.... At the end of the day Jeb selling is actually doing Ripple a favor by distributing XRP. I would not doubt it if most of my wallet is filled with coins from Jeb... THANK YOU Jeb :)

Jed

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