Did Ripple's Early Architect Deceive Investors with Past Price Remarks?

▲ David Schwartz, X, XRP/ChatGPT generated image ©

Amid controversy that Ripple's (XRP) early architect deceived investors with past remarks regarding its price, he has directly refuted the claims, stating that his comments were merely an explanation of market liquidity, not a price prediction.

According to crypto media outlet Cryptonews on April 27 (local time), David Schwartz, Ripple's former Chief Technology Officer, recently faced strong criticism from the community on social media platform X regarding a post he made in 2017. One user accused him of misleading the community and instilling false hope by mentioning XRP's liquidity and price levels in the past, demanding a clear explanation.

In the problematic 2017 post, Schwartz argued that for XRP to handle large-scale global transaction volumes, its price could not be dirt cheap. At the time, he used a simple example to explain the need for liquidity: if XRP traded at $1, sending $1 million would require 1 million XRP, but if the price were $1 million, only 1 XRP would be needed to transfer the same value.

In response, Schwartz pointed out that many investors misunderstood the post as a guarantee of XRP's future value. He drew a line against speculation, clarifying that his past remarks were not a promise of a target price but merely an explanation of how the market works. He also explained that he left the old post untouched because deleting it would remove the context and potentially cause greater confusion.

This controversy intensified when he recently deleted a post in which he defended Arbitrum's decision to freeze 30,000 Ethereum (ETH) linked to the KelpDAO exploit. He explained that he deleted the post due to confusing Arbitrum with another network, but this incident has further fueled holders' suspicions and demands for verification regarding his past statements.

This ongoing debate clearly demonstrates that even remarks made years ago still significantly influence public opinion within the XRP community. Schwartz firmly maintains that his past statements focused on liquidity, transaction capacity, and market depth, rather than price prediction.

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