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Ripple CTO Confirms Ripple is Not Obliged to HODL XRP
Ripple CTO Confirms Ripple is Not Obliged to HODL XRP
March 5, 2025
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The Ripple CTO David Schwartz recently confirmed that Ripple owes no obligation to hold XRP, attributing this notion to the misrepresentation of XRP’s security status. His comments were made in response to an ongoing discussion regarding Ripple’s role in the distribution of XRP and its responsibilities toward token holders.
For context, Bitcoin advocate and XRP critic Pierre Rochard argued that Ripple has no obligation to ensure that XRP holders benefit from its actions. He asserted that the company is free to sell its substantial XRP holdings, even if such actions negatively impact retail investors. According to him, this is what distinguishes XRP as a non-security.
Ripple Has No Obligation to HODL Its XRP Bag
Interestingly, Schwartz concurred, emphasizing that Ripple, like any other business, operates in its own best interest. He compared the ownership of XRP to possessing early artwork from an emerging artist.
“100% correct. IMO, Ripple can, will, and should act in its own interest. You should not expect Ripple to act in your interest to the detriment of its own interest or those of its shareholders.”
— David “JoelKatz” Schwartz (@JoelKatz) March 4, 2025
While investors might hope that the artist continues to create value that benefits their holdings, there is no obligation for them to do so. He stressed that neither Ripple nor any company should be expected to act against its own interests to serve investors.
Amid this disclosure, the Ripple CTO also pointed out that Ripple has been an established player in the industry for nearly 14 years. The company holds more XRP than it could feasibly liquidate in a short timeframe, alleviating fears that it could dump all its holdings in the short term.
“I’d also add that Ripple has been here for about 14 years now. We have more XRP than we could possibly monetize in a short period of time, so there’s no way to avoid us being here for quite a bit longer. Ripple being the only successful crypto company is as absurd as Google being…”
— David “JoelKatz” Schwartz (@JoelKatz) March 4, 2025
Moreover, Schwartz dismissed the notion that Ripple could be the only major crypto company to succeed, comparing it to expecting Google to be the sole winner in the internet industry. Notably, his comments resonate with Ripple’s defense in its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC), which was initiated in December 2020. For context, the SEC alleged that Ripple had an obligation to ensure XRP holders realized gains on their holdings, a theory that the firm has rejected.
XRP Not a Security
Following Schwartz’s latest remarks, a prominent Ripple critic known as “ScamDaddy” shared a screenshot of the conversation, questioning why anyone would be surprised by Ripple prioritizing its business goals, implying that this has always been evident. Schwartz responded, suggesting that much of the confusion regarding Ripple’s role in the XRP ecosystem stems from those promoting the narrative that XRP is a security. He implied that this group has deliberately misrepresented the relationship between Ripple and XRP.
“It’s mostly the ‘XRP is a security’ crowd that deliberately created confusion about the relationship between Ripple and XRP,” the Ripple executive stated in a post on X.
“It’s mostly the ‘XRP is a security’ crowd that deliberately created confusion about the relationship between Ripple and XRP.”
— David “JoelKatz” Schwartz (@JoelKatz) March 5, 2025
Notably, further discussion arose when XRPL validator Vet pointed out that individuals who believe Ripple owes XRP holders an obligation to HODL are also those claiming that Ripple was responsible for issuing XRP. In response, “ScamDaddy” acknowledged that the term “issued” is widely debated but maintained that Ripple’s founders created both the XRP Ledger and the token, later distributing it. However, Vet countered this, clarifying that the XRP Ledger existed before Ripple as a company. He acknowledged that there was an overlap between the individuals who developed the technology and those who later established Ripple, but he emphasized that the two entities were not synonymous.
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