Ripple CTO Prefers Ripple Shares Over XRP Tokens
Ripple’s CTO, David Schwartz, recently revealed that he chose to invest in Ripple shares instead of XRP tokens. While he did not disclose the exact amount of his holdings, Schwartz mentioned that the XRP choice would have been more liquid and potentially more profitable at present. However, he is uncertain if his decision was the right one.
Ripple’s Growing Value and XRP Holdings
Ripple Labs, the creator of XRP cryptocurrency, has experienced significant growth in value, especially with its ongoing lawsuit against the SEC. The company recently repurchased $285 million worth of shares from early investors, bringing its total worth to $11.3 billion. As for its XRP holdings, Ripple currently holds approximately 46.55 billion tokens, with a large portion locked in escrow.
Concerns about Centralization and XRP Sales
The substantial stake held by Ripple has raised concerns about centralization within the XRP market. Apart from the tokens locked in escrow, Ripple periodically sells 5 billion XRP tokens, leading to worries about potential negative effects on market prices.
$142 Million Worth of XRP Sold
In December 2023, Ripple sold 238 million XRP tokens, equivalent to $142 million. This sale sparked discussions among XRP enthusiasts regarding burning the escrow. However, Schwartz deemed this highly improbable and stated that it would not provide any real benefits.
Ripple’s Options for XRP Holdings
Schwartz also revealed that Ripple initially planned to reduce its XRP holdings through giveaways but found them ineffective once XRP gained market value. Currently, the company has two options: either continue holding onto its XRP or sell the tokens.
Hot Take: Ripple CTO’s Decision Reflects Uncertainty
David Schwartz’s preference for Ripple shares instead of XRP tokens highlights the uncertainty surrounding investment choices. While XRP may offer more liquidity and potential profit, Schwartz remains unsure if he made the right decision. Ripple’s growing value and ongoing discussions about centralization and XRP sales further add to the complexities of managing XRP holdings. As Ripple continues to navigate these challenges, the company must carefully consider its options for the future of its XRP holdings.
By
By
By