Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Former Ripple Chief Technology Officer David Schwartz acknowledged that at the inception of the business, the company’s leadership viewed its cryptocurrency XRP as lacking potential, while Ripple’s investors preferred to acquire shares in the company rather than tokens.
Schwartz indicated that in 2012, he assessed the likelihood of XRP reaching a price of $0.25 as one in a hundred. The Ripple executive asserts that he was skeptical about the entire cryptocurrency sector, given that Bitcoin was valued at just $2 at that time. Schwartz estimated the chances of the first cryptocurrency hitting $100 as one in ten.
The former director recounted an instance where he sold 40,000 ethers at $1.05 each, believing that the asset had peaked. When the initial assets of Ripple were distributed, Schwartz opted for a stake in the company instead of XRP tokens, considering ownership of a business share to be more promising. He now views this as a mistake: the XRP token has proven to be a more liquid asset than Ripple’s shares.
“No one at Ripple believed that the company could retain such a large volume of XRP and ultimately profit billions from its sale — at least not in the foreseeable future,” Schwartz admitted.
Related Posts
The crypto entrepreneur concurred with a statement from one of the project’s investors, which claimed that Ripple created XRP due to financial difficulties: the company sold tokens to stay afloat and subsequently invested the proceeds into other projects to build capital.
“If we could have looked into the future and believed in XRP, we would have done everything differently,” Schwartz stated.
The former Ripple executive does not rule out the possibility that the price of XRP could decline to between $0.25 and $0.31. He recalled how previously the price of XRP had surged to $3 before plummeting to $0.2.
As of Tuesday, March 17, the XRP token is trading at $1.51. Over the past week, the cryptocurrency has increased in value by nearly 7%.
Currently, at least 30 corporate investors hold positions in XRP-backed exchange-traded funds. The total investment volume of these investors in XRP-ETFs exceeds $210 million, according to data from Bloomberg Intelligence.
