Jed McCaleb Clarifies XRP Exit: From Transparency to Space Ambitions

Jed McCaleb, the pioneering force behind Ripple’s founding, recently broke silence on long-standing criticism regarding his departure from the company and subsequent liquidation of his XRP portfolio. The debate resurfaced when XRP holder Jim Knox publicly accused McCaleb of intentionally damaging Ripple investors, suggesting his actions stemmed from interpersonal conflicts rather than principled decisions. However, McCaleb’s response reveals a more nuanced narrative about transparency, community rights, and the complex decisions surrounding major crypto holdings.

The Transparency Question: Information Before Action

McCaleb’s core defense centers on a straightforward principle: advance notice. Before selling any of his XRP tokens, he explicitly informed the Ripple community of his decision to exit the company and his fundamental loss of faith in the project’s direction. This disclosure, McCaleb argues, fundamentally differs from a silent liquidation. It gave XRP holders the opportunity to position themselves strategically—effectively allowing them to “act ahead” of his market moves.

“I told the Ripple community I was leaving. I did that before I sold my XRP. The alternative was to sell without telling people. Is that better?” McCaleb stated, framing the choice as binary: transparency with forewarning versus covert unloading. Beyond this communication, McCaleb points to additional measures taken to mitigate potential losses. During his transition away from Ripple, the community was offered the ability to exchange their XRP holdings for Stellar (XLM), currently trading at $0.16, providing an exit mechanism for those uncomfortable with the shifting dynamics. Knox’s characterization of McCaleb’s departure as a hostile maneuver aimed directly at the community contradicts this narrative of structured, communicative transition.

McCaleb’s Current Vision: The Space Economy

While the XRP controversy persists among certain community segments, McCaleb’s attention has shifted toward far larger ambitions. Recent reporting indicates he is channeling significant portions of his accumulated crypto wealth into Vast Space, his commercial space infrastructure startup. The company is pursuing an aggressive strategy: replacing the aging International Space Station (ISS) with a next-generation commercial facility through a NASA contract.

This forward pivot has generated mixed reactions within the XRP Army. Some community members view it as evidence of McCaleb’s genuine entrepreneurial spirit and long-term thinking. Others remain skeptical. Knox himself remarked dismissively: “That’s not the kind of person you can trust,” in response to optimistic commentary about McCaleb’s space ventures. The divergence in perception reflects deeper tensions about McCaleb’s motivations and reliability within the crypto sphere.

Ten Years of XRP: The Historical Context

Understanding McCaleb’s position requires examining the full arc of his involvement with XRP and Ripple. In 2011, McCaleb, David Schwartz, and Arthur Britto began developing the XRP Ledger, an infrastructure designed to enable faster, scalable transactions across networks. The trio generated 100 billion XRP upon launch, fundamentally establishing the token’s genesis.

By September 2012, McCaleb partnered with Chris Larsen and Britto to formally establish Ripple (originally incorporated as NewCoin, Inc.). The newly formed company received 80 billion XRP as a gift, while the three founders retained 20 billion collectively. This distribution meant McCaleb possessed approximately 9 billion tokens during the early days.

However, diverging visions on the company’s direction led to McCaleb’s departure in June 2013. Rather than a dramatic exit, his separation initiated a prolonged process of liquidation. Market participants and critics later speculated about the nature of his sales strategy—whether McCaleb was attempting to dump his entire position aggressively. Ripple’s legal interventions imposed constraints on his selling pace, including requirements to conduct measured sales and direct certain proceeds toward charitable causes.

The timeline extended for nearly a decade. By July 2022, McCaleb had fully exited his XRP position, marking the complete closure of his involvement with the token he had helped create. As of February 2026, XRP trades at $1.44, reflecting the token’s market evolution independent of its original architect’s holdings.

The Community Divide

The clash between McCaleb and critics like Jim Knox encapsulates a broader tension within cryptocurrency communities: the balance between founder accountability, individual autonomy, and community welfare. McCaleb’s framing emphasizes his adherence to principles of transparency and communication. His critics interpret the same events through a lens of fiduciary responsibility and community loyalty.

This fundamental disagreement reflects unresolved questions about founder obligations after departure, appropriate asset disposition strategies, and the expectations crypto communities place on their pioneers. Whether McCaleb’s approach represents a template for ethical large-holder liquidation or a cautionary tale remains contested terrain within the ecosystem.