23 May 2015

Ripple price plunges on co-founders sell-off plans

23 May 2014  |  4148 views  |  0 Graph with fingers measuring

The price of the Ripple native digital currency has plummeted after Ripple Labs co-founder Jed McCaleb revealed that he plans to sell off his entire massive holding.

Ripple offers a decentralised order book relying on open-source peer-to-peer payment protocols to speed the transfer of financial information.

The co-founders of the outfit behind it, Ripple Labs, also created a native currency called XRP that can only be used within the Ripple system and acts as a bridge currency and an anti-spam measure.

In total, 100 billion XRP were created, 80 billion of which were given to Ripple Labs to manage and distribute to users. The co-founders kept the other 20 billion.

In a post on the XRP Talk message board, McCaleb says that he personally had a stash of nine billion XRP, some of which he has since given to various charities.

Now: "I plan to start selling all of my remaining XRP beginning in two weeks. Because I have immense respect for the community members and want to be transparent, I'm publicly announcing this before I start."

News of the planned sell off has seen XRP's price drop by as much as 65% in 24 hours.

McCaleb - who also founded bitcoin exchange Mt. Gox before selling it - left the Ripple Labs project last year.

Another co-founder, Arthur Britto, says that sell off will not damage the outfit, insisting "the short-term price of XRP does not hinder our ability to execute on the vision. Our company is well-funded. We're not dependent on XRP."

Adds Britto: "Prior to today, we've been working on a founders' XRP lock up plan, which Chris (Larsen) and I are participating in. You can rest assured that a dumping event like this won't happen from other co-founders."

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

20 May, 2014
16 May, 2014
06 May, 2014
21 March, 2014
05 March, 2014
10 February, 2014
07 February, 2014

Related company news

 

Top topics

Most viewed Most shared
Cash overtaken by non-cash payments in the...
6492 views comments | 48 tweets | 31 linkedin
MasterCard launches personal payments serv...
5729 views comments | 15 tweets | 26 linkedin
US banks bid to crack down on 'card cracki...
5437 views comments | 8 tweets | 10 linkedin
UK opts out of European online payments se...
5425 views comments | 18 tweets | 15 linkedin
Metro Bank to offer consumer loans via Zop...
4605 views comments | 29 tweets | 20 linkedin

Featured job

up to £100K base, £200K OTE, benefits
London, UK

Find your next job