Ripple Co-Creator David Schwartz Reveals Massive Reduction in Personal XRP Holdings
Former CTO cites personal risk aversion for selling millions of tokens over several years.
1Significant Token Divestment
David Schwartz, co-creator of the XRP Ledger and Ripple’s former CTO, confirmed he reduced his personal XRP holdings from approximately 26 million tokens to between 2 million and 3 million. This substantial sell-off occurred over several years through a combination of open-market sales, gifts, and various asset transfers.
2Risk Aversion Strategy
Schwartz attributes these sales to personal risk tolerance rather than a lack of confidence in Ripple’s technology. He stated that he has always felt uncomfortable holding large amounts of volatile digital assets. Consequently, he prioritized financial security by selling portions of his holdings whenever the token reached new price highs.
3Broad Asset Liquidation
Beyond XRP, Schwartz revealed a wider trend of liquidating his cryptocurrency portfolio. His Bitcoin holdings dropped from 1,500 to just 1 BTC, while his Ethereum stash plummeted from 40,000 to 6 ETH. He emphasized that almost every major risk he has taken in life has paid off, yet he remains risk-averse.
4Tax and Financial Impact
In 2025 alone, Schwartz sold approximately 2.5 million XRP, much of which originated from earlier compensation packages. He publicly disclosed paying roughly $1.7 million in capital gains taxes on these specific transactions. He rejected allegations that he quietly offloaded tokens onto retail holders, maintaining that his sales were transparent.
5Community Backlash and Criticism
The revelation sparked intense debate among XRP holders, with some questioning why a key architect of the ledger would view the asset as risky. Critics argued his actions undermine the project's credibility, with some even suggesting his comments could provide grounds for potential legal challenges against the blockchain company.
6Market Performance Context
These comments arrived during a difficult period for XRP, which has fallen roughly 50% over the past year. Recently trading between $1.06 and $1.16, the asset has faced significant downward pressure, recently losing its position to USDC in market capitalization rankings. The token dropped another 2.2% in recent daily trading.
7Schwartz’s Current Exposure
Schwartz stepped down from day-to-day operations at Ripple at the end of 2025 but remains a board member and CTO Emeritus. His remaining financial exposure is now concentrated in Ripple equity rather than freely tradable XRP. Unlike tokens, this equity is not publicly traded and cannot be readily liquidated by him.
8Market Influence Analysis
While early builders often influence market sentiment, Schwartz maintains that his individual sales have had very little impact on XRP’s price. He argues that the token's current valuation is primarily driven by broader market forces rather than specific developments within the XRP Ledger space or his personal portfolio management decisions.