Ethereum
Ripple CTO Reveals Reason for Ethereum Pre-ICO Investment Amid ETH Gate Feud
In a recent exchange, Ripple Chief Technology Officer (CTO) David Schwartz revealed the reason for his early investment in Ethereum (ETH). Additionally, he shed light on his investment in the Ethereum project before its explosion into the public consciousness. Schwartz’s revelations come amid renewed tensions between him and Charles Hoskinson, founder of Cardanoregarding the controversial “ETH Gate” theory.
Ripple CTO reveals why he invested in Ethereum so early
A user recently took to X and asked Ripple’s CTO about his initial investment in Ethereum and how he gained access to it. Additionally, they asked Schwartz about his controversial stance on Ethereum as he recently engaged in a feud with Hoskinson. Additionally, they highlighted how Schwartz exploited former SEC Director William Hinman’s statement amid the ETH gate controversy.
Additionally, the user shared a snapshot of a tweet from the Ripple CTO in December 2023. The tweet highlighted that Schwartz held 40,000 Ethereum when the price was only $1. Subsequently, he sold the entire ETH reserve at that price to install solar panels in a house, which he no longer even owns today.
However, Schwartz deeply regretted this decision, as the stash that was worth only $40,000 jumped more than 250,000% shortly after the sale. Ripple’s CTO noted that the investment value exceeded $100 million, causing it to suffer significant losses.
Schwartz’s journey into the genesis of Ethereum dates back to a personal connection with Vitalik Buterin, co-founder of ETH. Responding to the user’s query, Ripple’s CTO said, “I knew Vitalik. He invited me to participate. Additionally, he added, “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 to help an acquaintance.
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ETH gate controversy with Charles Hoskinson
The aforementioned disclosure followed a heated exchange between Schwartz and Hoskinson. At the heart of the dispute are competing narratives regarding Ethereum’s alleged influence over regulators, particularly the U.S. Securities and Exchange Commission (SEC), and its implications for rival cryptocurrencies like XRP from Ripple.
Hoskinson, in a recent discussion, rejected allegations of Ethereum’s complicity in manipulating regulatory outcomes. Additionally, he called them conspiracy theories. The Cardano founder emphasized: “No matter how many times you try to confuse the two statements, it will not change reality. »
Hoskinson’s stance reflects his long-standing skepticism of XRP enthusiasts’ allegations regarding Ethereum’s alleged role in instigating lawsuits against Ripple and XRP. Schwartz, however, countered Hoskinson’s claims by drawing attention to the relationship between former SEC official William Hinman and Ethereum.
Ripple’s CTO asked, “So wasn’t Hinman intimately involved?” Did he not have a financial interest in Ethereum? Did he recuse himself? Or is it not proof for some reason? These questions highlight Schwartz’s concerns about potential conflicts of interest and regulatory impartiality.
Additionally, Schwartz pointed to Hinman’s affiliation with Simpson Thacher & Bartlett LLP, a company associated with Ethereum, as further evidence warranting scrutiny. Additionally, he highlighted Hinman’s interactions with Simpson Thacher’s staff during his tenure at the SEC, suggesting potential implications across the regulatory landscape.
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