Ripple CTO Reveals Reason Behind Ethereum Pre-ICO Investment Amid ETH Gate Feud

Ripple CTO David Schwartz faced questions regarding his conflicting stance on Ethereum as he invested in the ETH project even before the ICO went live.
By Coingape Staff
Ripple CTO David Schwartz Dismisses Lawsuit Against CharacterAI

Highlights

  • Ripple CTO David Schwartz was quizzed about his early investment in Ethereum.
  • He revealed the reason behind this investment and debunked the claims of a controversial stance.
  • The revelation comes amid the recent ETH gate controversy wherein Schwartz countered claims made by Cardano's Charles Hoskinson.

In a recent exchange, Ripple’s Chief Technology Officer (CTO), David Schwartz, disclosed the reason behind his early investment in Ethereum (ETH). Moreover, he shed light on his investment in the Ethereum project before its explosion into public consciousness. Schwartz’s revelations come amid renewed tensions between him and Cardano founder Charles Hoskinson, regarding the controversial “ETH Gate” theory.

Advertisement
Advertisement

Ripple CTO Reveals Why He Invested In Ethereum So Early

A user recently took to X and questioned the Ripple CTO about his early investment in Ethereum and how he gained access to it. Furthermore, they asked Schwartz about his controversial stance on Ethereum as he engaged in a feud with Hoskinson lately. Moreover, they spotlighted how Schwartz leveraged former SEC Director William Hinman’s statement amid the ETH gate controversy.

In addition, the user shared a snapshot of a tweet by the Ripple CTO in December 2023. The tweet highlighted that Schwartz held 40,000 Ethereum when the price was just $1. Thereafter, he sold the entire ETH reserve at that price to install solar panels in a house, which he doesn’t even own now.

However, Schwartz deeply regretted the move as the reserve that was merely worth $40,000 surged over 250,000% shortly after the selloff. The Ripple CTO noted that the investment’s value soared beyond $100 million, marking significant losses for him.

Schwartz’s journey into Ethereum’s genesis traces back to a personal connection with Vitalik Buterin, ETH’s co-founder. Replying to the user’s query, the Ripple CTO declared, “I knew Vitalik. He invited me to participate.” Furthermore, he added, “I wanted to support him, so went in for 20 BTC. I didn’t really ask any questions. It got me 40,000 ETH. I thought of it as helping an acquaintance.”

Also Read: XRP News Today: Ripple Can Counter SEC’s Attacks on Stablecoin With Binance Ruling

Advertisement
Advertisement

ETH Gate Controversy With Charles Hoskinson

The above-mentioned disclosure follows a heated exchange between Schwartz and Hoskinson. At the heart of the dispute lies competing narratives surrounding Ethereum’s alleged influence on regulatory bodies, particularly the U.S. Securities and Exchange Commission (SEC), and its implications for rival cryptocurrencies like Ripple’s XRP.

Hoskinson, in a recent discussion, dismissed claims of Ethereum’s complicity in manipulating regulatory outcomes. Moreover, he branded them as conspiracy theories. The Cardano founder emphasized, “No matter how many times you try to conflate the two statements, it won’t change reality.”

Hoskinson’s stance reflects his long-standing skepticism toward allegations by XRP enthusiasts regarding Ethereum’s purported role in instigating legal actions against Ripple and XRP. Schwartz, however, countered Hoskinson’s assertions by drawing attention to the relationship between former SEC official William Hinman and Ethereum.

The Ripple CTO queried, “So, was Hinman not intimately involved? Did he not have a financial interest in Ethereum? Did he recuse himself? Or is that not evidence for some reason?” These questions underscore Schwartz’s concerns regarding potential conflicts of interest and regulatory impartiality.

Moreover, Schwartz pointed to Hinman’s affiliation with Simpson Thacher & Bartlett LLP, a firm associated with Ethereum, as further evidence warranting scrutiny. In addition, he highlighted Hinman’s interactions with Simpson Thacher staff during his tenure at the SEC, suggesting potential implications in the regulatory landscape.

Also Read: Ripple-Partner SBI Holdings To Establish Joint Venture In Japan

Advertisement
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.