David Schwartz Accused Of Selling His XRP; What Does It Mean For Ripple?

A few days ago, most of the crypto market operated negatively, including Bitcoin (BTC) and XRP, two of the largest digital currencies in the market. However, XRP has been operating stably over the last few months, even when the market expanded at very fast rates. This has created some doubts among XRP and Ripple enthusiasts in the market.

Did David Schwartz Sell His Coins?

According to the Twitter user @hlnoooo, Ripple’s Chief Technology Officer, David Schwartz, has been selling his XRP stack. This should be the biggest warning for the XRP community according to him.

Warning to all $XRP holders.

Ripple CTO @JoelKatz recently selling his $XRP stack is the biggest warning sign one could ever get. This is the most bearish sign for $XRP I have ever witnessed since beginning of '17.https://t.co/aHqeaLbxv8

I recommend everyone to get OUT NOW

— Hlnoooo (@hlnoooo) April 20, 2019

At the same time, the Twitter user pointed at another Ripple employee that has been selling his XRP over the last few days. @Hlnoooo has also shared the wallets that have been moving these assets.

David Schwartz XRP wallet:

https://bithomp.com/explorer/r3gRpQRDdu7pzPhM9nDmXMgskbJ6vwTDbB

Ripple’s Employee XRP Wallet:

https://bithomp.com/explorer/rHBJhToGaESqiV9K1wydyoSPZNn7K2CcM3

According to the Twitter user, these wallets started to move these digital asses when the U.S. Securities and Exchange Commission (SEC) published the “Framework for Analysis of Digital Assets.” He has also shared one of the fragments of this framework:

“Most digital assets (among those existing as of now, in early 2019) will be classified as securities. Asset transferability and the managerial / development work done by core stakeholders will mean this.”

Regarding the SEC framework.https://t.co/gvXoTlPSud pic.twitter.com/Xq7LAEL4a8

— Hlnoooo (@hlnoooo) April 21, 2019

Joel Katz himself has also mentioned that he was selling his XRP that he purchased on the open market in the last few years. He agreed on a “de-risking strategy” with his wife not to have too much at risk.

Schwartz has also answered @Hnloooo saying that this is still the case and that he follows the de-risking strategy that he made with his wife. He went on saying that the majority of their liquid assets are still in XRP. Their illiquid assets are still in Ripple stock as well. Thus, he explained that he will have lots of skin in the game for the foreseeable future.

If you think about it, circumstances have put my wife and I into a situation where we have way more risk than it would make any rational sense for us to have. There's nothing we can really fundamentally do about it. All my eggs are in one basket, but I do like the basket.

— David Schwartz (@JoelKatz) April 22, 2019

At the time of writing this article, XRP is the third largest digital currency in the market. Each XRP can be purchased for $0.322 and it has a market capitalization of $13.52 billion.