To reduce his risk exposure, Ripple Chief Technology Officer acknowledges that in the past he has sold a large number of crypto-currencies, Ethereum, Bitcoin and XRP, at a very low price at the time. David Schwartz could have made a considerable capital gain.
When to sell your tokens to maximise your profits? Every investor in crypto-currency asks himself this question. But for a variety of reasons, the timing is not necessarily optimal.
David Schwartz, Ripple’s Chief Technology Officer, knows something about this. On Twitter, the CTO admits to having given away a large number of tokens. The sale, which took place several years ago, was at a lower price than if the sale had taken place today.
Risk aversion as a trigger for the sale
Ripple CTOdeclares having sold 40,000 Ethereum at just 1 dollar a token. He thus cashed in 40,000 dollars. At the current ETH rate, Schwartz would have pocketed between 13 and 15 million dollars.
The expert also says that he sold other crypto-currencies, in particular, Bitcoin for $750 and XRP for $0.01. Why such a sale when these assets could be considered a reserve of value?
David Schwartz justifies it by a certain risk aversion and therefore by his desire to reduce his risk exposure.
“(…) I am a risk-averse person with people who depend on me financially and emotionally. Fate has made me put a lot of eggs in one basket” he explains.
10,000 Bitcoins in 2010 to buy pizzas
My work, my reputation, Ripple Action, XRP, etc.”. I like this basket. But the risk is very high in the whole crypto domain. I’m just too rational to pretend otherwise and suggest to others to do the same,” continues the executive.
Being a big name in the world of crypto-currency is not immune to risk. And as Decrypt points out, Ripple’s CTO is not the only specialist to have sold off assets at what is considered an unfavourable price.
Laszlo Hanyecz, a developer involved notably in the Bitcoin source code, reported the payment in 2010 of two pizzas for 10,000 Bitcoins. By keeping these tokens, he would have today a capital of nearly 115 million dollars.