David Schwartz Submits Proposal towards Adding NFT Support to XRP Ledger
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Ripple CTO, David Schwartz, has recently shared his opinion on how Ripple, the San Francisco based cross-border payment firm, could have handled the behemoth amount of XRP in its possession.

Schwartz shared this while responding to a crypto enthusiast that believes Ripple’s biggest sin was the usual way it’s been managing its XRP holdings. Recall that over 50% of XRP in circulation belongs to the payment firm.

Read Also: Grayscale Investments Dumps Massive Portion of its XRP and XLM Holdings

Ripple’s Early Attempts to Give Away XRP Caused Huge Collateral Damage

According to Schwartz, Ripple had once attempted to give away XRP but resulted in huge collateral damage. He thereby solicited the opinion of his teeming followers regarding what the payment firm could have done in such a situation.

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“What do you think we should have done? As soon as there was a market price, giveaways stopped working…

At first, we were giving it away. Everyone who wanted it was using it. But once it had a market price, giveaways were just gamed by people who immediately sold and they caused huge collateral damage.”

Read Also: David Schwartz Says Ripple Is Making Strategic Adjustments to Enhance XRP

Risk in Committing Its Massive Holdings to the Development of XRP Ledger

Schwartz quantified the amount of risk in committing the massive XRP holdings directly to the development of XRP Ledger when he was asked a related question.

“At that time, we would have had no idea what to commit it to. You’re imagining we somehow commit to unchangeable rules very early, taking the risk we guess wrong.”

David Schwartz’s Opinion on How Ripple Managed Its Massive XRP Holdings

Sharing his opinion on how Ripple has so far managed its huge XRP holdings, David Schwartz said he thinks the cross-border payment company did a good but imperfect job:

“I think we faced some unprecedented challenges and did a good job overall. Not perfect. I don’t think making big irrevocable commitments earlier would be helped and it definitely didn’t seem prudent at the time.

“The biggest problem was that we didn’t want to hold XRP forever, but giving it away became impossible. It was a bizarre challenge. Lock ups don’t work too well either.”

Read Also: Brad Garlinghouse Discusses the Impact of XRP Regulatory Uncertainty on Ripple’s Customers

It can be recalled that Ripple’s mode of managing its huge XRP holdings is the major reason for the lawsuit filed by the United States Securities and Exchange Commission (SEC) against the firm and its top executives.

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Solomon Odunayo

By Solomon Odunayo

Solomon Odunayo is an accomplished blockchain and cryptocurrency expert at Herald Sheets, known for his in-depth analysis and engaging articles that cater to both beginners and experienced readers. With a degree in Computer Science from the University of Lagos, Solomon leverages his technical background and keen understanding of the crypto space to provide readers with valuable insights and up-to-date news. His passion for innovation and commitment to staying current with industry developments make him a trusted voice in the digital currency community.