David Schwartz, the Chief Technology Officer of Ripple, recently addressed speculation surrounding his XRP holdings and trading activity during a discussion on X (previously Twitter).
Dispelling Rumors and Setting the Record Straight
Schwartz refuted claims that he is a billionaire, a misconception he has consistently debunked, as earlier reported by Times Tabloid. He also addressed the allegation that he sold billions of XRP to acquire Ethereum (ETH), as purportedly stated in a Securities and Exchange Commission (SEC) filing.
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For clarification, Schwartz revealed details about his past and present XRP holdings. He disclosed that at his peak, he held approximately 26 million XRP, indicating that his current holdings are lower.
Additionally, he confirmed that while he sold some Bitcoin (BTC) in the past to acquire XRP and ETH, he has never sold XRP to purchase other cryptocurrencies.
“I don’t think I’ve ever sold XRP to buy another crypto except maybe small amounts for some unusual purpose.” Schwartz stated.
Me? At my peak holding, I had about 26 million XRP. I sold BTC to buy XRP and ETH. I don't think I've ever sold XRP to buy another crypto except maybe small amounts for some unusual purpose.
— David "JoelKatz" Schwartz (@JoelKatz) April 29, 2024
Risk Management Strategy and XRP Sales
Responding to inquiries about how he manages his XRP holdings, Schwartz explained that he employs a “reasonable risk minimization strategy.” This involves selling portions of his BTC and XRP holdings whenever they reach new all-time highs. This approach stems from his inherent risk-averse nature, where he prioritizes minimizing losses over maximizing gains.
“I’m naturally a very risk averse person. I don’t really feel my wins and my losses really sting. I still have more risk left than I’m comfortable with. But, obviously, I can’t really complain.” Schwartz remarked.
When questioned about the possibility of future XRP sales, Schwartz indicated that it would likely occur when he receives XRP as payment. This is due to tax implications, as receiving cryptocurrency as compensation often necessitates selling a portion to cover withholding taxes.
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— TimesTabloid (@TimesTabloid1) July 15, 2023
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Transparency and Community Engagement
Ripple CTO, has set a great example by openly discussing his XRP holdings and investment strategy. This level of transparency helps dispel rumors and speculation and provides valuable insights into the financial decision-making processes of a key figure within the XRP ecosystem.
Schwartz’s willingness to engage in such open communication fosters a culture of trust and understanding within the cryptocurrency community. It sets a positive precedent and may encourage other prominent figures in the industry to follow suit. Increased transparency can lead to a healthier and more informed cryptocurrency landscape overall.
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