XRP co-founder and Ripple CTO Emeritus David Schwartz recently triggered mixed reactions in the cryptocurrency community after publicly disclosing a significant reduction in his digital asset portfolio. Schwartz revealed that he has sold the majority of his holdings, including XRP, Bitcoin, and Ethereum.
Massive Portfolio Reduction
Schwartz’s disposal encompassed a dramatic drop in his XRP holdings from 26 million tokens to just 3 million, a decline of roughly 88%. He also trimmed his Bitcoin position from 1,500 BTC to a single BTC and his Ethereum holdings from 40,000 ETH to 6 ETH. The move has sparked divergent views: some market participants interpret the sell‑off as a lack of confidence in XRP, while others see the reduced exposure as a sign of prudent risk management.
Schwartz’s Defense
Defending his actions, Schwartz emphasized that the liquidation was not XRP‑specific but part of a broader risk‑averse strategy. He noted that the remaining XRP stake—approximately 11.5% of his prior holdings—outpaces his residual positions in Bitcoin (0.067%) and Ethereum (0.015%). According to him, the decision aligns with a personal agreement with his spouse to liquidate assets at all‑time highs and reflects his general aversion to risk.
Schwartz added that, despite occasional regret, this approach is central to his financial philosophy, which has prevented him from accumulating billionaire‑level wealth. He also clarified that he retains a modest amount of Ripple stock, which represents the extent of his current risk exposure.
Potential Upside for XRP
Several XRP proponents have highlighted a positive angle: even after the substantial reduction, Schwartz remains disproportionately bullish on XRP compared with the broader market. His retained XRP share suggests a continued belief in the token’s long‑term potential, despite the heightened market volatility and ongoing regulatory scrutiny.
