Recently there has been a lot of buzz surrounding Ripple. On 2014-05-22 Jed, one of the creators of the Ripple system, announced he will be selling the XRPs (ripples) he received for developing the system. This wouldn’t be newsworthy, if it wasn’t for the sheer amount of currency being liquidated. At the inception of the system, Jed owned 9 billion XRPs, or 9% of the total available supply. Some of the currency was allegedly given away to various charities, but one can expect a good number of them to still be owned by Jed. The announcement has caused XRPs to drop in price dramatically, and Jed is still to sell his share (which he is planning to do two weeks from the announcement).
Another announcement was made today, on 2014-05-23 by Jesse from Kraken. He is one of the first investors to Ripple Labs, the company that took over the development of Ripple from Jed and other creators. Jesse resigned from the Board of Ripple Labs, stating that “I’m no longer confident in the management nor the company’s ability to recover from the founders’ perplexing allocation to themselves of 20% of the XRP”.
Quick note – what are XRPs?
XRPs are a currency used inside of the Ripple protocol to pay for fees. They are mainly used as ananti-DoS measure. XRPs can be exchanged for any other currency inside of the Ripple system, and can also be sent to anyone in the system.
What this means for Ripple
At the same time, this incident creates a lot more bad press for Ripple and Ripple Labs. People holding XRPs and expecting a growth of value will be disappointed and may be bitter towards the system. A lot more people will once again start to call Ripple a scam. This could hinder adoption of the system further.