Ripple CTO David Schwartz recommended large cryptocurrency holders to partially “unload” their portfolios.
Schwartz decided to tweet his investment views. It
wrotethat if people have enough cryptocurrencies that can change their lives, they should seriously consider selling at least some of them in order to reduce the risks. However, Schwartz added that his message should not be regarded as a prediction of what to expect in the cryptocurrency market. Ripple’s CTO has recommended that users calculate whether they own enough digital assets to generate an acceptable annual return.
Earlier, Schwartz admitted that he sold a large number of ethers before the “bull run” of the market in 2017, which he later regretted. He planned to buy ETH when their rate fell, but this never happened. Schwartz’s latest tweet calling for a profit-taking in cryptocurrency investments contradicts his previous statements.
It should be noted that his tweet came in the midst of Ripple’s lawsuit with the US Securities and Exchange Commission (SEC). At the end of 2020, the regulator accused the company and its management of conducting an unregistered ICO in the amount of $ 1.3 billion. The SEC claims that XRP is an investment contract, not a virtual currency, and bitcoin and ether are not considered by the department as securities. Ripple hopes that the regulator will treat XRP by analogy with these cryptocurrencies, which will determine the future fate of many altcoins.
This month, by court order, Ripple gained access to some internal SEC documents, where the regulator is clarifying in what cases crypto assets can be considered securities. In addition, a few days ago, the court rejected the SEC’s petition to obtain financial data from Ripple executives. This gives hope for a favorable outcome of the case for Ripple, however, the trial is not over yet.
On the other hand, in a tweet where Ripple’s technical chief advises selling crypto assets before they fall, Schwartz was referring to cryptocurrencies in general, not XRP. Schwartz said last year that he would have invested in XRP even if he had not been involved in the development of Ripple.
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