Ethereum
Ripple CTO reveals purchase of 40,000 ETH during Ethereum ICO
- Ripple CTO David Schwartz revealed his purchase of 40,000 Ethereum (ETH) during the ICO days, which he later exited at $1.
- If he had kept his investment until now, its value would have exceeded $100 million at the current Ethereum price.
Ripple Chief Technology Officer David Schwartz recently shared some details about his Ethereum purchases at the start of the initial coin offering (ICO). at the beginning of the ICO, the Ripple CTO purchased a total of 40,000 Ethereum tokens.
The disclosure surfaced after an investigation by an XRP enthusiast named MetamanX on May 10. This prompted Schwartz to provide more details about his involvement in Ethereum ahead of its public pre-ICO phase. However, Schwartz clarified that his involvement during the ICO was a purely personal and non-commercial decision. Furthermore, he also revealed his knowledge of Ethereum co-founder Vitalik Buterin.
After receiving the request, Schwartz revealed that Buterin, a trusted friend, had invited him to join the ICO. This led him to contribute 20 BTC to support Buterin’s efforts. THE Ripple CTO said:
“I knew Vitalik. He invited me to participate. I wanted to support it, so I opted for 20 BTC. I didn’t really ask any questions. This earned me 40,000 ETH. I thought it was like helping an acquaintance.”
Schwartz’s account 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 increased, culminating with 1 BTC fetching 1,337 ETH at the end of the sale.
Ripple CTO Shares Early Release Moment
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 move generated a profit of approximately 220% over a two-year holding period.
In a December 2023 post, Schwartz wrote: “As many of you know, I sold 40,000 ETH at around $1 to install solar panels on a house I no longer own. That ETH was worth over $100 million shortly after.”
Nonetheless, hindsight suggests a lost chance for Ripple’s CTO. If he had kept his investment until now, with Ether’s current price at $2,927, it would have amounted to a staggering $117,166,291, an increase of 292,816% from its price of sale for $40,000.
The intertwined stories of Ripple And Ethereum contribute to the complexity of their story. Buterin’s stay at Ripple, which was cut short by visa issues, highlights the interconnections between the two efforts. However, tensions have intensified recently, notably with the legal conflict between Ripple and the SEC. Buterin’s criticism of Ripple’s decisions and their potential impact on Ethereum’s regulatory status added tension to their relationship.