Ripple Labs CTO David Schwartz made a recommendation to cryptocurrency market participants while the company itself is at a turning point in its history.
This is probably going to be my least popular tweet ever, but: If you have life-changing amounts of cryptocurrency, please take some time to seriously consider selling some to reduce your risk and exposure. This is not any kind of prediction about what the market will do.
— 𝘋𝘢𝘷𝘪𝘥 “𝘑𝘰𝘦𝘭𝘒𝘢𝘵𝘻” 𝘚𝘤𝘩𝘸𝘢𝘳𝘵𝘻 (@JoelKatz) April 13, 2021
“If you hold amounts in cryptocurrencies that can affect your life, please take the time to seriously consider a partial sale in order to reduce risks and open up the market. This is not some kind of prediction about what will happen to the market, ”he wrote.
Schwartz noted that the recommendation primarily applies to those who have concentrated at least half of their annual earnings in cryptocurrencies or have significant debts. With XRP up 927% over the past year and Bitcoin continuing to hit highs above $ 64,000, most long-term holders fall into this category.
CTO Ripple has previously admitted to his own bad investment decisions.
“I bought a lot of cryptocurrencies that turned out to be a disaster. My cumulative loss only from tokens that have completely lost their value exceeds $ 300,000, ”he wrote.
Schwartz is also familiar with the concept of lost benefit. He once sold 40,000 ETH at about $ 1 per coin. At the current exchange rate, the value of this volume of cryptocurrency is $ 95 million.
Although Schwartz’s recommendations are clearly not devoid of common sense, and investors are not tired of reminding them of the need to fix profits when working with risky assets, he himself notes:
“I think I was thinking about what I will buy back when the price falls, but this did not happen. Of course, you can also regret taking on too few risks. Many people know that I have gradually mitigated the risks over the years. Believe me, today I dream about not doing this. But when I initially planned my risk mitigation strategy, the idea that bitcoin would rise above $ 10,000 seemed laughably absurd, and 10 cent XRP looked like a complete victory. ”
Schwartz made his comment amid continuing doubts among traders about the sustainability of the latest XRP movement. By April 9, in a week, the token almost doubled to $ 1, even then it was at a multi-year high, and since then it has almost doubled to $ 1.95. XRP’s rise comes despite Ripple’s ongoing litigation with the US Securities and Exchange Commission (SEC). Despite a series of intermediate victories for Ripple, lawyers believe that it is too early to talk about the company’s unconditional triumph over the regulator.
It is curious that Schwartz gave similar advice to cryptocurrency holders about taking profits on December 30, 2017, that is, at the very peak of the previous bull cycle. Whether he was guided by some kind of insider knowledge in his last recommendation is impossible to say.
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