Jed McCaleb, co-founder of Ripple, has reportedly agreed to lock-up restrictions for his planned sale of his Ripple (XRP) holdings.
McCaleb announced his intention to sell his 9 billion XRP stake in May. He has since co-founded Stellar, which is fairly similar to Ripple.
Ripple Labs is aware of the potential damage to their currency’s value upon such insider sales. When McCaleb made his announcement in May, the cryptocurrency lost half its value over the span of two days.
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As part of the agreement, McCaleb will not sell more than:
– $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
The announcement notes how, despite differences, Jed and the remaining Ripple leadership share the vision of change to the world of finance.
It also emphasizes how CEO Chris Larsen has agreed to gift 7 billion XRP “to an independent foundation committed to the financially underserved”- the Ripple Foundation for Financial Innovation.