Ripple’s CTO has stated that Ripple is acting in its own best interests and is not obliged to hold XRP. But what does this mean for XRP?
“Ripple must act in its own best interests”
In a message on X (Twitter), David Schwartz, Chief Technology Officer (CTO) of Ripple, made it clear that the company will act in its own best interest. This also involves Ripple selling XRP if necessary.
100% correct. IMO, Ripple can, will, and should act in its own interest. You should not expect Ripple to act in your interest to the detriment of its own interest or those of its shareholders.
— David “JoelKatz” Schwartz (@JoelKatz) March 4, 2025
This was a response to Pierre Rochard, vice-president of Research at Riot Platforms. Rochard warned investors not to expect Ripple to prioritize their interests. Rochard said:
“They are free to dump on you and you have no right to do anything about it other than to dump XRP with them.”
Schwartz responded to this:
“100% correct. IMO, Ripple can, wants to and must act in its own interest. You cannot expect Ripple to act in your interest at the expense of its own interest or that of its shareholders.”
XRP and art
To further explain his point of view, Schwartz compares XRP to art. In a message on X, he states:
“If I own a work from the beginning of an artist’s career, I hope or expect the artist to create and promote new works that can stimulate demand and create markets for the early work and make me money. But the artist has no obligation to me and works of art are not securities.”
Inactive XRP wallet with more than $7 billion
This conversation started after blockchain detective ZachXBT discovered an old wallet with $7 billion in XRP that had been inactive for more than six years. According to ZachXBT, this wallet is believed to be owned by Chris Larsen, co-founder of Ripple. On his Telegram channel, he stated:
“Chris Larsen’s XRP addresses still contain 2.7 billion XRP ($7.18 billion).”
He also pointed out that these addresses moved more than $109 million in XRP to exchanges in January 2025. Many people are now wondering if Larsen still has control over these funds.
What does this mean for XRP?
This statement by Schwartz has probably scared many XRP investors. It is important to keep in mind that this is the case with all cryptocurrencies and the companies behind them. Cryptocurrencies are not considered securities.
This also ensures that rug pulls are not punishable. It is unethical, but not illegal. A large company like Ripple also wants to think of its own image, but this does not mean that it is not possible for them to dump XRP. It is always a scenario to keep in mind.
If we are talking about Larsen’s inactive wallet with large amounts of XRP, we can also expect some of this to be sold in the future. This could have a negative impact on the market, but with current trends, the XRP market seems capable of absorbing this. Either way, it is wise to be cautious.
