Ripple’s CTO Revealed Crypto Selloffs He Made In 2012

By James Gray·13 October 2020·1 min read

Key Points

Ripple's chief technology officer David Schwartz revealed he sold 40,000 Ether for $1 each back in 2012.
He announced the detail on Twitter on October 11, explaining that he and his wife developed the

Ripple's chief technology officer David Schwartz revealed he sold 40,000 Ether for $1 each back in 2012. He announced the detail on Twitter on October 11, explaining that he and his wife developed the strategy together as a risk management approach. At today's prices, that stash would be worth over $15.5 million.

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He regrets the decision. Schwartz also unloaded Bitcoin at $750 per coin and Ripple's own XRP token at $0.10. He didn't disclose the quantities, but the numbers are stark: Bitcoin now trades around $11,481.84 and XRP hovers at $0.26. Across all three positions, his early sales look like expensive mistakes.

He offered the confession in response to a tweet accusing people who derisk while promoting XRP of exit scamming. The user didn't name Schwartz, but he felt compelled to explain himself. "Fate caused me to put a lot of eggs in one basket. The risk is very high in the entire cryptocurrency space. I'm just too rational to pretend otherwise and suggest others do the same," Schwartz wrote.

His wife shared the mindset. Together they valued security over the possibility of massive gains. Schwartz views himself as a cautious investor, unwilling to ask others to stomach volatility he wouldn't accept in his own portfolio. The derisking wasn't casual or opportunistic, he argued. It reflected conviction about how much exposure a household should tolerate.

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