Inside Look: Ripple’s CTO Opting for Ripple Shares Instead of XRP
Ripple’s Chief Technology Officer (CTO), David Schwartz, has recently shared some interesting insights about his investment choices. While the price of XRP is increasing and Ripple is expected to have a positive turn, Schwartz has revealed that he is more interested in Ripple shares than in XRP itself.
Schwartz’s decision has raised some questions among the community. Many people are curious to know if he chose to receive Ripple shares instead of XRP. In response to this, Schwartz clarified that it’s true and explained the reasoning behind his move.
Ripple currently holds a significant amount of XRP, with 46.55 billion tokens, which accounts for about 46.5% of the total supply. Out of this, 5.258 billion XRP is available for use, while the remaining 41.3 billion XRP is securely locked away with a monthly release and relock mechanism in place. This means that Ripple releases and locks up a billion tokens every month.
However, the recent sale of almost 892 million XRP by Ripple in Q3 2023 has raised concerns about its impact on XRP prices. Some community members have suggested getting rid of Ripple’s escrow balance as a bold move. Schwartz acknowledged these suggestions but emphasized that it’s not a straightforward decision. He outlined two primary choices: holding onto the XRP or systematically selling it off, with the goal of reducing the company’s holdings quickly.
In December, Ripple made headlines when it sold a significant amount of XRP tokens, three times more than its usual monthly sales. This sparked discussions in the Bitcoin community and raised questions about Ripple’s plans. The idea of burning the escrow was proposed, but Schwartz expressed skepticism about its tangible benefits.
Schwartz’s preference for Ripple shares over XRP has led to speculation about its potential impact on XRP. While he initially thought that his holdings would be more flexible if he had chosen XRP, he later became uncertain if it was the right choice. Currently, Ripple’s shares are valued at around $11.3 billion, and the company aims to repurchase them for $285 million. However, Ripple’s CEO, Brad Garlinghouse, has made it clear that there are no immediate plans for an initial public offering (IPO).
In conclusion, Ripple’s CTO, David Schwartz, has made a bold investment choice by opting for Ripple shares over XRP. While his decision has raised some concerns, it remains to be seen how it will impact the future of XRP and Ripple as a whole.