Ripple CTO David Schwartz has publicly declared he used to hold 26 million XRP, noting he never liquidated his XRP tokens to acquire other cryptocurrencies.
Schwartz made this disclosure recently on X while engaging in a debate with Charles Hoskinson, the founder of Cardano. During the conversation, Schwartz and Hoskinson had a stern disagreement, sparking intrigue from some community members.
“Billionaires arguing. Good lord,” remarked an X user. However, Ripple’s CTO refuted the billionaire title, a trend he has persistently held onto. Meanwhile, another commenter went on to claim that Schwartz “sold billions of XRP” to buy Ethereum tokens, as purportedly established in a statement from the SEC.
On this premise, the Ripple executive set the record straight by disclosing his XRP holdings while dispelling the billionaire status persistently misattributed to him.
Ripple CTO Held 26M XRP
In particular, Schwartz revealed that he had approximately 26 million XRP when he held more cryptocurrencies. This disclosure suggests that the Ripple executive now holds less XRP than during his peak holding period.
Recall that Schwartz stated he holds between 1 million and 10 million XRP, as The Crypto Basic uncovered recently.
Furthermore, the Ripple CTO asserted that he liquidated some of his Bitcoin holdings to acquire XRP and ETH. However, he noted that he has never sold XRP tokens to acquire other cryptocurrencies.
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Except for some unusual purposes, I don’t think I’ve ever sold XRP to buy another cryptocurrency. Schwartz revealed.
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
Sold Some XRP to Manage Risk
Meanwhile, Schwartz faced more questions about how he divests his XRP, particularly whether he sells it when he requires funds.
In response, the Ripple CTO noted that he adopted “a reasonable risk minimization strategy” for his cryptocurrency holdings. Based on this arrangement, he sells BTC and XRP whenever they reach new all-time highs.
Furthermore, Schwartz highlighted that he adopted the risk management strategy as he is naturally very risk-averse. Per the disclosure, incurring losses in his investments hurts him more than any wins.
“I am not, by nature, a person who is comfortable with risk. I get little joy from wins and really feel losses,” Schwartz noted.
When Next is Schwartz Selling XRP?
When questioned about the timeframe for his next XRP sale, the Ripple CTO mentioned that it would probably occur the next time he receives XRP as payment.
Likely the next time someone pays me in XRP. Due to the way taxes work, receiving a digital asset as compensation involves selling some due to withholding.
— David “JoelKatz” Schwartz (@JoelKatz) April 30, 2024
He clarified that this is because of tax implications. The Ripple CTO explained that receiving a cryptocurrency as compensation typically involves selling some to cover withholding taxes.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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Source: https://thecryptobasic.com/2024/05/01/ripple-cto-held-26m-xrp-says-he-never-sold-xrp-for-other-crypto/?utm_source=rss&utm_medium=rss&utm_campaign=ripple-cto-held-26m-xrp-says-he-never-sold-xrp-for-other-crypto