Ripple's CTO: XRP Holdings Not a Guarantee

Ripple's CTO, David Schwartz, recently clarified the company's stance on its XRP holdings, stating that Ripple is not obligated to hold onto its XRP tokens. This statement comes amidst ongoing discussions about Ripple's role in XRP's distribution and its responsibilities towards token holders.

Schwartz agreed with Bitcoin advocate and XRP critic Pierre Rochard, who argued that Ripple has no obligation to ensure XRP holders benefit from its actions. Rochard asserted that Ripple is free to sell its large XRP holdings, even if it negatively impacts retail investors. Schwartz emphasized that Ripple, like any other business, operates in its own best interest. He compared XRP ownership to possessing early artwork from an emerging artist, stressing that neither Ripple nor any company should be expected to act against its own interests to serve investors.

Amid this disclosure, Schwartz pointed out that Ripple has been an established player in the industry for nearly 14 years. The company holds more XRP than it could feasibly liquidate in a short timeframe, alleviating fears that it could dump all its holdings in the short-term. Schwartz also dismissed the idea that Ripple could be the only major crypto company to succeed, likening the notion to expecting Google to be the sole winner in the internet industry.

Schwartz's comments echo Ripple's defense in its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC), initiated in December 2020. The SEC alleged that Ripple had an obligation to ensure XRP holders observed gains on their holdings, a theory that the firm has rebuffed.

Following Schwartz's latest remarks, a prominent Ripple critic who goes by "ScamDaddy" shared a screenshot of the conversation. He questioned why anyone would be surprised by Ripple prioritizing its business goals, implying that this has always been clear. Schwartz responded, suggesting that most of the confusion about Ripple's role in XRP's ecosystem comes from those pushing the narrative that XRP is a security. He implied that this group has deliberately misrepresented the relationship between Ripple and XRP.