Ex-Ripple CTO Reveals He Sold 26 Million XRP For Bitcoin, Only Holds Ripple Stock To 'Sleep Better At Night'

• David Schwartz of Ripple said he sold 26 million of the company’s crypto token for Bitcoin to cut direct crypto exposure and manage risk.
• He said he prefers a conservative strategy, accepting the risk of missing upside to “sleep better at night.”
• This comes as Ripple unlocked its 1 billion tokens from escrow last week.

A top insider at Ripple is dialing back risk just as crypto markets heat up again. Former Ripple (XRP) Chief Technology Officer (CTO) Emeritus David Schwartz said he sold 26 million XRP for Bitcoin (BTC): a move he says lets him “sleep better at night,” even as crypto bulls chase the next rally. 

He now holds limited crypto exposure, he said in a series of posts on Monday.

The former Ripple CTO, who joined the board of directors last year, explained that he has shifted most of his assets away from cryptocurrencies, adding that he is comfortable forgoing potential gains in exchange for lower risk. He added that his remaining exposure comes through Ripple stock, not tokens. “I fully recognize that crypto may be a once-in-a-generation chance to get rich,” he said, noting that his current approach helps him “sleep better at night.”

XRP’s price was trading at $1.40, up over 1% over the past 24 hours. On Stocktwits, the retail sentiment around XRP remained in the ‘bearish’ zone, while chatter around it remained in the ‘low’ levels over the past day.

Schwartz Reveals Discomfort With Large XRP Exposure

In a separate post in the thread, Schwartz noted that he had sold 26 million XRP in exchange for Bitcoin. He explained that when XRP was trading at “10 cents,” the value of his holdings had reached millions of dollars, which was risky, and that he “very much did not like.”  

He said that his primary exposure now comes through Ripple equity held in private markets, rather than directly through cryptocurrencies, which he views as more volatile and higher-risk and has opted out of. 

Bitcoin’s price was trading at $81,009, up over  2% in the last 24 hours – a three-month high. On Stocktwits, the retail sentiment around BTC remained in the ‘bullish’ zone, while chatter around it moved to ‘high’ from ‘normal’ over the past day.

Schwartz Cuts Direct Crypto Exposure

Schwartz explained his stake in Ripple provides indirect exposure to the crypto sector, which he considers sufficient, allowing him to avoid the price swings associated with holding tokens like XRP directly. 

He added that he would likely hold more XRP and other cryptocurrencies if he had less exposure through Ripple equity, emphasizing that most of his broader portfolio remains conservative.

Schwartz’s comments came days after Ripple released 1 billion XRP from its monthly escrow last week, a routine supply event valued at roughly $1.3 billion that is part of the company’s long-standing token distribution schedule. Ripple had introduced this mechanism back in 2017. 

Read also: Coinbase Cuts 14% Of Workforce In A ‘Harsh’ Reset Amid AI Shift – CEO Says Firm Built To ‘Weather Any Storm’

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