Ripple CTO Speaks out on His XRP Holdings’ Recent Value Change

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As an analyst with over two decades of experience in the financial industry, I find David Schwartz’s recent discourse on the SEC’s appeal against Ripple and the nature of investment contracts particularly insightful. His extensive background in law and computer science lends credibility to his perspective, and it is evident that he has a deep understanding of both the technical and regulatory aspects at play.

As a dedicated analyst, I’ve recently taken note of the latest development regarding Ripple. Specifically, I’m referring to the appeal submitted by the Securities and Exchange Commission (SEC) to the Supreme Court against Ripple, an issue that has been under my close watch. Ripple’s Chief Technology Officer, David Schwartz, has shared his thoughts on this matter with his followers, providing valuable insights into the ongoing saga.

In addition, he briefly discussed his own XRP investments, reassuring the community that he is diligently managing their assets too.

Schwartz discusses investment contract definition

In a recent tweet, a representative from Ripple expressed thoughts regarding the Supreme Court appeal submitted by the SEC. The regulator argued against the decision made by the judge in July of last year, claiming that Ripple’s sales of XRP on secondary markets, as well as personal XRP sales by Brad Garlinghouse and Christian Larsen, did not break laws concerning securities and investment contracts.

Schwartz gave a definition of an investment contract, which was, “If you bought an investment contract, then someone is obligated to do something for you even if it harms them to do it.”

If you purchase a business contract, it means that someone is bound by duty to perform certain actions for you, regardless of any potential harm it may cause them. In simpler terms, if you buy shares of a company, I’m obligated not to misuse the company’s resources or distribute profits only to myself, even though it might be more advantageous for me to do so.

— David “JoelKatz” Schwartz (@JoelKatz) November 11, 2024

Indeed, Schwartz noted that when one expects others to act in their own best interest, this does not constitute a contract at all. Using the example of purchasing art from an up-and-coming artist, he emphasized that it is not considered an investment contract either. In essence, Schwartz explained that the elements of a contract and an investment are completely distinct.

Regarding the topic of the Howey test, which determines whether an asset is considered an investment contract, the Ripple CTO expressed: “It’s not a strict, absolute rule. Instead, it needs to be interpreted thoughtfully in light of intricate, real-world scenarios.

Schwartz expressed his optimism that the Supreme Court will make sensible decisions, applying current laws appropriately.

Schwartz comments on his XRP holdings

In the comments to that tweet, an XRP enthusiast accused Schwartz of taking all the dividends for himself, while saying that “nobody has made a penny off $XRP from holding it for 7 years. It’s a waste of everyone’s time and money.”

As an analyst, I find that the fluctuations in the value of my XRP holdings mirror those experienced by other investors in the same market. It is nearly impossible to discern any distinct patterns or actions on my part that would suggest I am manipulating the value of my XRP (or Ripple’s XRP) differently from others.

— David “JoelKatz” Schwartz (@JoelKatz) November 11, 2024

As a crypto investor, I shared with Schwartz that my XRP holdings have seen fluctuations in value, just like everyone else’s. He emphasized that his role as Ripple CTO is dedicated to elevating the worth of all XRPs – not just mine, but also those held by Ripple and our community.

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2024-11-12 17:39