Ripple CTO: The Company Can Sell XRP Whenever It Wants
In a statement sparking uproar, Ripple CTO David Schwartz declared that the firm will safeguard its own agenda and sell XRP whenever it deems appropriate—regardless of community backlash.
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Following the announcement of a U.S. strategic crypto reserve, set to include major coins like XRP, Ripple’s top management has drawn attention over David Schwartz’s controversial remarks. Schwartz maintains that Ripple can freely sell its tokens to earn operational revenue, and any belief that the company would put user interests before its own is “very foolish.”
It's mostly the “XRP is a security” crowd that deliberately created confusion about the relationship between Ripple and XRP. Ripple is a privately-held corporation that is owned by its shareholders like typical for-profit corporations,
Schwartz commented.
Analysts Weigh In
Crypto fans had a strong reaction to these claims, most of it negative. Even so, some market observers supported the technical director’s viewpoint.
Pierre Rochard, who oversees research at Riot Platforms, insists that XRP is not classified as a security. Therefore, according to his logic, Ripple has no obligation to its users. Investors who buy these tokens on secondary exchanges shoulder all the risk themselves.
Even so, not everyone is on board with that view. Some community members think these corporate moves and comments could shake the faith of big investors, pushing the token’s price down and paving the way for a worst-case scenario like bankruptcy. From their perspective, XRP isn’t just another quick fix for raising funds—it’s a crucial part of keeping the blockchain’s infrastructure going.
I'd also add that Ripple has been here for about 14 years now. We have more XRP than we could possibly monetize in a short period of time, so there's no way to avoid us being here for quite a bit longer. Ripple being the only successful crypto company is as absurd as Google being the only successful internet company,
Schwartz fired back.
The Future Trajectory of XRP
Ripple has long sold its tokens openly—case in point, in June 2024, it unloaded about 150 million tokens for $71 million. But Schwartz’s remarks are raising tension right when things are already volatile. XRP is experiencing strong price swings after a steep rally and the announcement of a U.S. crypto reserve, and its long-term direction is still in question. Many traders predict another sharp market dip ahead.
Check this out: Ripple CEO Says Maximalism Is the Enemy of Crypto Progress
Schwartz’s remarks might also spell trouble for XRP, particularly if Congress goes ahead and approves a crypto reserve. Sure, Republicans have the majority, but any positive jolt to the market could be watered down if Ripple decides to offload more tokens for its own expenses just then. That would make people question whether XRP really belongs in a strategic reserve.
Much like other crypto firms, Ripple finds itself reliant not just on internal decisions, but also on wider financial and political currents. Regardless of what David Schwartz proclaims, the company must walk a tightrope between serving its financial interests and maintaining user trust on a global scale.
At least until the crypto reserve wins its final seal of approval.
Read on: Jed McCaleb Left Ripple Years Ago – Is the Conflict Still Ongoing?
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