David Schwartz, CTO Emeritus of Ripple, stated that he significantly reduced his XRP and Ethereum holdings over the years, citing a strong dislike of risk as the primary motivation behind his decision. Ripple, a San Francisco-based fintech company known for its blockchain-based payments network and the XRP cryptocurrency, has been at the center of major developments in the digital asset sector. Schwartz, recognized as a key technical architect of the company, revealed that his approach led him to miss out on substantial gains during crypto market surges.
Reducing Holdings Amid Market Highs
Schwartz explained that a personal agreement with his wife required him to sell a portion of his cryptocurrency holdings each time they reached a new all-time high. This strategy, aimed at gradually lowering risk, led him to part ways with significant amounts of XRP and Ethereum during periods of price appreciation. He admitted to selling XRP at $0.10 and Ethereum at around $1, far below the peaks these assets later achieved.
Schwartz emphasized his deep aversion to volatility and risk, noting that emotional well-being influenced his financial decisions more than the possibility of outsized returns. He said that he is not comfortable taking large risks, even if it means stepping back from potential “once-in-a-generation” opportunities.
“I wish I was more comfortable with risk, but I’m just not that person. I agreed with my wife to sell at every new all-time high and I really, really hate risk,” Schwartz reflected.
According to Schwartz, maintaining financial and emotional stability took priority over maximizing wealth, even though his decisions sometimes resulted in missed profits.
Defending Probabilistic Selling
Facing criticism over selling major digital assets too early, Schwartz clarified that his approach was rooted in probability and self-awareness rather than a lack of belief in the future of cryptocurrencies. He said that, for him, the high valuations projected by some in the community appeared too far-fetched to justify holding long term at higher risk levels.
If he believed there was even a 1% chance that Ethereum could reach $2,368, he would not have sold at $1.05, Schwartz explained in previous remarks.
In April, Schwartz reported that he had sold most of his remaining cryptocurrency holdings, preferring to keep the bulk of his wealth away from the volatility of digital assets. At his peak, he held approximately 26 million XRP, a stake that has been substantially reduced over time.
He also disclosed that, after liquidating his Bitcoin positions, he moved into XRP and Ethereum, but gradually converted much of his portfolio back into more stable holdings. As of his latest public statement, Schwartz holds only a small amount of crypto aside from his Ripple stock.
Looking back, Schwartz said he has accepted the possibility that he may forgo life-changing gains, but prefers the peace of mind from avoiding extreme volatility. For him, a measured approach outweighs the allure of chasing unpredictable returns.
Mini dictionary: Ripple is a technology company specializing in real-time gross settlement systems, currency exchange, and remittance networks, utilizing distributed ledger technology. XRP is its associated cryptocurrency, used for facilitating cross-border payments and liquidity.
| Asset | Schwartz’s Sale Price | Peak Price (Historical) | Peak Holdings |
|---|---|---|---|
| XRP | $0.10 | $3.84 | 26 million |
| Ethereum (ETH) | $1 | $4,878 | Undisclosed |
