Ripple’s CTO, David Schwartz (aka “JoelKatz”), recently set the record straight: Ripple doesn’t owe XRP holders anything. This sparked a lot of discussion in the crypto world.
Ripple First, XRP Holders Second?
Bitcoin advocate Pierre Rochard ignited the debate, arguing on X (formerly Twitter) that Ripple isn’t obligated to prioritize XRP investors. He pointed out that Ripple sells XRP to generate revenue, and XRP holders have no special claim on the company’s actions. He essentially said: “Ripple is free to sell XRP, and you can’t stop them. It’s not an investment in Ripple; it’s just tokens being sold.”
Schwartz’s Response: 100% Agreement
Schwartz wholeheartedly agreed with Rochard. He stated plainly: Ripple will always act in its own best interest, and XRP holders shouldn’t expect otherwise. He used the analogy of owning an artist’s early work – you might hope the artist’s success boosts the value of your piece, but the artist has no obligation to you.
The Long Game
Schwartz also emphasized that Ripple’s involvement with XRP is long-term. They hold a massive amount of XRP and aren’t going anywhere anytime soon. He also highlighted that Ripple’s success doesn’t mean it’s the only successful crypto company, just like Google isn’t the only successful internet company.
The Bottom Line
Schwartz’s comments highlight a key point: while Ripple’s business often involves XRP, any positive impact on XRP’s price is coincidental, not a guaranteed outcome. Ripple’s focus is on its own success, not necessarily the success of XRP holders. At the time of writing, XRP was trading at $2.20.
