A recent post by the widely followed cryptocurrency analyst Good Morning Crypto (@AbsGMCrypto) has reignited discussion on Jed McCaleb’s departure from Ripple and his subsequent founding of Stellar.
The post references comments from Ripple CTO David Schwartz, who provided insight into McCaleb’s departure and the decisions that led to the creation of Stellar.
David Schwartz’s Perspective on McCaleb’s Exit
According to David Schwartz, Jed McCaleb had ideas that Ripple’s Board of Directors ultimately rejected. Unable to implement his vision within Ripple, McCaleb left to start Stellar based on those rejected ideas.
One of Stellar’s early initiatives was a large-scale giveaway similar to what McCaleb proposed at Ripple. However, Schwartz described this giveaway as a failure and suggested Stellar eventually pivoted to become “a clone of Ripple.”
Another key issue highlighted by Schwartz was McCaleb’s attempt to sell off his XRP holdings rapidly. Ripple intervened, preventing him from doing so through legal measures.
Schwartz stated that if Ripple had not taken action, McCaleb might have sold his XRP at a much lower valuation, significantly reducing its worth. As a result of Ripple’s restrictions, McCaleb’s XRP holdings ended up being worth over $1 billion.
Schwartz also criticized McCaleb’s approach to handling internal disagreements at Ripple. Rather than accepting the decisions of Ripple’s leadership and investors, McCaleb publicly criticized the company and started a direct competitor. Schwartz believes such actions are unethical.
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Community Member Response and Schwartz’s Clarification
In response to Schwartz’s comments, an X user named Dane pointed out that Schwartz explicitly stated that his remarks were not a reflection of Stellar’s current status or prospects.
Dane argued that ignoring this aspect of Schwartz’s statement would take the message out of context. While Schwartz was critical of McCaleb’s actions, he made no claims about Stellar’s present value as a project.
Schwartz himself later responded to Dane, stating, “100%. If you think what Jed did somehow renders Stellar/SDF evil or deserving of scorn, that argument almost equally applies to XRPL/Ripple.”
This comment emphasized that McCaleb’s departure and actions should not necessarily be used to discredit the Stellar Development Foundation (SDF) or the Stellar project itself. Schwartz appeared to acknowledge that Ripple and Stellar have their trajectories, independent of the events surrounding McCaleb’s exit.
Schwartz’s remarks provide an important perspective on the internal conflicts that led to the creation of Stellar. His clarification further suggests that Stellar’s current status should not be judged solely on the circumstances of its founding.
This discussion also highlights a broader issue within the cryptocurrency industry—disagreements among project founders can lead to separation and competition, sometimes at the expense of collaboration.
However, as Ripple and Stellar continue to evolve, their roles in the digital asset ecosystem will ultimately be determined by their technological advancements and real-world utility rather than past disputes.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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