David Schwartz Regrets Not Distributing More XRP Tokens When Price Was Low
1. David Schwartz, the chief technology officer of Ripple, has expressed regret that Ripple did not distribute more tokens when the price of XRP was low.
2. He believes that the current situation has become significantly more challenging due to the influx of tokens now that the price of XRP is at $0.4.
3. Schwartz believes that all tokens should be released into the market while the price is at its lowest to avoid taxation for American citizens.
David Schwartz, the Chief Technology Officer of Ripple, has recently expressed his regret over not distributing more tokens when the price of XRP was low. He believes that the current situation has become significantly more challenging due to the influx of tokens over the past few months, with the price of XRP now sitting at a steady $0.4.
This discussion was brought on by the recent airdrop of the FLR token from the Flare Network, and Schwartz believes that there are more obstacles than just the current market conditions. He argued that, due to taxation, American citizens would be subject to regular income tax if they received these tokens, meaning they would have to sell about 50% of the tokens when they receive them. This, he believes, is one of the reasons why all tokens should be released into the market while the price is at its lowest.
Ripple is a for-profit corporation, and the XRP in the escrow belongs to them. This means that there is no community ownership and no vote when it comes to the distribution of the tokens. This is a stark contrast to the Flare airdrop, where the tokens are meant to benefit the ecosystem and the community has a vote on the matter.
Schwartz has made it clear that he believes Ripple should have released more tokens when the price was low, as it would have allowed for a much smoother transition into the current market conditions. Unfortunately, this is no longer possible, and Ripple is now dealing with the consequences of their decision. It is unclear how Ripple will proceed going forward, but it is certain that Schwartz’s insight into the XRP supply and token distribution is invaluable.