David Schwartz, CTO of Ripple, Confirmed in an X Post That the Company Is Selling XRP to Fund Operations and Will Continue to Do So

The entire discussion started after Pierre Rochard said that XRP isn't a security.

In a candid conversation on X (formerly Twitter), David Schwartz, Chief Technology Officer (CTO) at Ripple, openly discussed the company’s practice of selling XRP to fund its operations.

The discussion unfolded after Pierre Rochard, a Bitcoin maximalist, stated that XRP is a security.

This statement was met with pushback from several community members who pointed out that the SEC’s case against Ripple centers around the sale of XRP to institutional investors, not the token itself.

It is important to note that in May, a judge ruled that the SEC’s actions were unlawful.

However, Rochard’s comment sparked a broader discussion about corporate priorities and community expectations.

Schwartz responded by saying that Ripple will continue to act in its own interest, and that the public shouldn’t expect Ripple to act to their benefit, especially not if it hurts Ripple’s own interest or those of its shareholders.

When you look at it from a corporate standpoint, Schwartz’s comments make a lot of sense since Ripple, as a publicly traded company with shareholders, is more than likely to prioritize its own gains and long-term viability over the demands or desires of individual users.

This means that even if some users push for changes that might benefit them in the short term, Ripple won't compromise its core business or financial health simply to satisfy those demands.

Also, as a publicly traded company, Ripple is legally and ethically obligated to act in the best interests of its investors, even if those decisions may not always align perfectly with what some users or community members want.

Announcing that Ripple has been around for about 14 years and that it has more XRP than it could possibly monetize in a short period of time, Schwartz added that the company will act on its own interest and the public shouldn’t expect Ripple to act to their benefit, especially not if it hurts Ripple’s own interest or those of its shareholders.

He said:

“1) We’ve been at this for 14 years. Amazing how some have no concept of longevity.

2) We have far more XRP than we could possibly monetize in a short period.

3) We will act in our own interest. Don’t expect us to act for your benefit especially if it hurts us or our shareholders.”

The post has since garnered significant attention, sparking reactions from both sides of the coin. Some expressed disappointment and viewed it as a letdown, considering Ripple's role in the broader crypto ecosystem. Others, however, recognized the corporate aspect and shareholders' importance.

Ultimately, Schwartz's message serves as a reminder that while Ripple aims to build innovative technology and products such as XRP and RippleNet, no one should expect it to subsidize or implement changes that might hurt its profitability or competitive positioning.