Ripple’s Chief Technology Officer (CTO), David Schwartz, has ured cryptocurrency holders to consider selling some amounts of their cryptocurrencies to minimize risk. Schwartz sounded the note of warning on Twitter.
Reduce Your Risk and Exposure
The remark by the CTO of Ripple, David Schwartz, that holders should sell part of their cryptocurrencies took many crypto holders by surprise.
Meanwhile, Schwartz clarified that his advice does not constitute a prediction of the cryptocurrency marketplace.
He emphasizes that those with life-changing cryptocurrency volumes should consider selling part of it to minimize loss.
This comes amid a bullish run for Ripple’s token, XRP.
XRP recorded a 30% surge in the past week.
Simultaneously, several cryptocurrencies like Bitcoin, Ethereum, and meme-focused cryptocurrency Dogecoin recently recorded new All-Time Highs (ATHs), respectively.
He recounted how he adhered to his recent advice in the past. Schwartz revealed that he sold $42,000 worth of Ethereum before the cryptocurrency peaked in 2019 to purchase solar panels.
While he later regretted the action in his subsequent tweets, he insisted that one needs to convert part of his/her personal gain into something stable, particularly when investing in volatile assets like cryptocurrency.
Given that Ripple’s XRP is currently locking horns with the Securities and Exchange Commission (SEC) in a $1.3 billion lawsuit, analysts appear to be wary of Schwartz’s statement.
SEC Lawsuit Against Ripple Takes New Dimension
The SEC alleges that Ripple Lab sold its XRP token as unregistered security from 2013 to 2018. Lately, however, the case has taken a new dimension in court.
Judge Sarah Netburn pronounced last week Friday that the SEC has no right to demand personal financial data belonging to Ripple’s Brad Garlinghouse and Chris Larsen.
Based on the befitting judgment, Ripple filed a motion on April 12 asking the court to dismiss the SEC lawsuit in all its entirety.
Reacting to the SEC’s earlier lawsuit, Ripple’s CTO said that all the evidence available shows no difference between XRP and Bitcoin.
He maintains both the cryptocurrency market and Ripple see no difference between the cryptocurrencies; hence, there is no basis for considering it as a security.
He further assured XRP holders that there is no cause for alarm, stressing that the lawsuit will not lead to the end of the company’s operation.
Also, Schwartz asserts that the governing bodies do not have any legal right to control their ecosystem.
Meanwhile, XRP has surged in recent days. At press time, it is trading at $1.73, according to CoinMarketCap.