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- Ripple’s chief technology officer, David Schwartz, disclosed his purchase of 40,000 Ethereum (ETH) during the ICO days, which he later exited at $1.
- Had he retained his investment until now, its value would have surpassed $100 million as of the current Ethereum price.
Ripple’s chief technology officer David Schwartz recently shared some details about his Ethereum purchases in the early days of the Initial Coin Offering (ICO). during the early days of the ICO, the Ripple CTO purchased a total of 40,000 Ethereum tokens.
The disclosure surfaced after an inquiry from an XRP enthusiast named MetamanX on May 10. This prompted Schwartz to provide further details about his involvement with Ethereum prior to its public pre-ICO phase. However, Schwartz has clarified that his involvement during the ICO was purely a personal decision and not a business decision. Besides, he also revealed his acquaintance with Ethereum co-founder Vitalik Buterin.
Upon receiving the inquiry, Schwartz revealed that Buterin, a trusted friend, had invited him to join the ICO. This led him to contribute 20 BTC in support of Buterin’s endeavor. The Ripple CTO said:
“I knew Vitalik. He invited me to participate. I wanted to support him, so I went in for 20 BTC. I didn’t really ask any questions. It got me 40,000 ETH. I thought of it as helping an acquaintance”.
Schwartz’s narrative is supported by public records, confirming that the Ethereum ICO spanned 42 days from July 22 to September 2, 2014. During this period, early investors could obtain 2,000 ETH for 1 BTC. As the ICO unfolded, the exchange rate of ETH to BTC rose, culminating in 1 BTC fetching 1,337 ETH by the end of the sale.
Ripple CTO Shares Moment of Early Exit
The expert referenced a tweet from December, revealing his sale of Ether. Schwartz’s choice to sell his 40,000 ETH holdings when their value reached $40,000 represented a significant return on investment. This decision yielded approximately 220% profit over a two-year holding duration.
In a message last December 2023, Schwartz wrote: “As many of you know, I sold 40,000 ETH at about $1 to put solar panels on a house I no longer own. That ETH was worth over $100 million shortly after”.
Nevertheless, hindsight suggests a lost chance for the Ripple CTO. If he had held onto his investment until now, with Ether’s current price at $2,927, it would have amounted to a staggering $117,166,291, showcasing a 292,816% increase from his selling price of $40,000.
The intertwined histories of Ripple and Ethereum contribute to the intricacy of their narrative. Buterin’s time at Ripple, which was curtailed by visa issues, highlights the interconnections between the two endeavors. However, tensions have escalated in recent times, particularly with Ripple’s legal clash with the SEC. Buterin’s critiques of Ripple’s decisions and their potential impact on Ethereum’s regulatory status have added strain to their relationship.
