Saturday, May 25, 2024
HomeCryptocurrencyRipple CTO Received 40,000 ETH. Here's the Story

Ripple CTO Received 40,000 ETH. Here’s the Story

David Schwartz, the Chief Technology Officer of Ripple Labs, recently shared details about his investment in Ethereum during the project’s initial coin offering (ICO) in 2014.

The disclosure came in response to a community inquiry regarding Schwartz’s past involvement with Ethereum. Schwartz clarified that his decision to participate in the ICO stemmed primarily from his friendship with Vitalik Buterin, a co-founder of Ethereum. He explained that Buterin invited him to contribute to the ICO, and Schwartz, wanting to support his friend’s venture, sent 20 BTC.

Schwartz emphasized that his investment was made without extensive research or a focus on potential financial returns. His primary motivation was to support Buterin’s vision for Ethereum, a project he believed held promise for the future of blockchain technology. In exchange for his 20 BTC, Schwartz received 40,000 ETH tokens.

A Look Back at the Ethereum ICO

Public records support Schwartz’s account. The Ethereum ICO took place over 42 days in mid-2014. Early investors were able to acquire 2,000 ETH for 1 BTC, which at the time translated to roughly $0.31 per ETH. However, the exchange rate between ETH and BTC fluctuated throughout the ICO, with the price per ETH increasing as the token sale progressed.

A Missed Opportunity, But Still a Profitable Investment

Schwartz ultimately sold his 40,000 ETH tokens when their combined value reached $40,000. This transaction represented a successful 222.58% return on his initial investment after a two-year holding period.

However, the story could have been significantly different. Had Schwartz held onto his ETH tokens for an additional year, they would have appreciated considerably. By 2015, the value of Ethereum had skyrocketed, and Schwartz’s initial investment of $12,400 could have been worth a staggering $4 million.

<

Schwartz’s experience serves as a reminder of the unpredictable nature and inherent volatility of cryptocurrency investments. While his early involvement in Ethereum proved to be profitable, it also highlights the potential for significant missed gains. The story he shared also underscores the role that personal relationships can play in investment decisions.


Follow us on Twitter, Facebook, Telegram, and Google News

Solomon Odunayo
Solomon Odunayo
Solomon is a trader, crypto enthusiast, and analyst with over four years of experience in the industry. He strongly believes that crypto assets and the blockchain will continue to gain prominence. At TimesTabloid.com, he focuses on news, articles with deep analysis of blockchain projects, and technical analysis of crypto trading pairs.
RELATED ARTICLES

Latest News & Articles