Ripple CTO David Schwartz clarified that the company has no obligation to hold onto its XRP holdings. His statement responded to a debate about Ripple’s role in XRP’s distribution and its responsibilities toward investors.
Bitcoin advocate and XRP critic Pierre Rochard argued that Ripple is free to sell its XRP, even if it impacts retail investors. He claimed this proves XRP is not a security. Schwartz agreed, stating that Ripple, like any business, acts in its own best interest.
Comparison to Early Artwork
Schwartz compared XRP ownership to owning early artwork from an emerging artist. While investors may hope the artist continues creating value, there is no guarantee. He emphasized that no company should act against its own interests to benefit investors.
Related article: Ripple CTO Engages XRP Community on Crypto Reserve
Despite this, Schwartz noted that Ripple has been in the industry for nearly 14 years and holds more XRP than it could quickly sell. This reduces concerns about a large-scale sell-off.
Schwartz dismissed the idea that Ripple must be the only successful crypto company, comparing it to expecting Google to dominate the internet entirely. His remarks aligned with Ripple’s defense in its ongoing legal battle with the SEC. The regulator claims Ripple was obligated to ensure XRP investors profited, a stance the company denies.
Critics Weigh In
Following Schwartz’s comments, Ripple critic “ScamDaddy” questioned why anyone would be surprised by Ripple prioritizing its business goals. Schwartz responded, stating that most confusion comes from those pushing the “XRP is a security” narrative.
Related article: Ripple CTO Explains Why Tokenization is the Future of Finance
XRPL validator Vet added that those who expect Ripple to HODL XRP also claim the company issued it. “ScamDaddy” insisted Ripple’s founders created and distributed XRP.
Vet countered, explaining that the XRP Ledger existed before Ripple. While some developers later formed Ripple, he stressed that Ripple and XRP are not the same entity.
