Ripple Vet Defends Controversial 2017 XRP Price Take
TL;DR
Ripple's David Schwartz defends his 2017 statements on XRP pricing amid community criticism. He argues that XRP's value must reflect its potential for handling global transaction volumes.
Key points
- David Schwartz defends 2017 XRP price comments
- Accusations of misleading the XRP community
- XRP's price must reflect its transaction volume potential
Mentioned in this story
Ripple vet David Schwartz, who frequently interacts with members of the XRP community on X, has defended a widely debated 2017 social media thread regarding the price of the major altcoin.
This came after an X user accused Schwartz of spending his time "fooling the XRP community" and asking if the Ripple vet planned on deleting his old statements.
'XRP can't be dirt cheap'
Back in November 2017, Schwartz tweeted that XRP cannot be "dirt cheap" if it were to handle massive global transaction volumes.
"It can't be dirt cheap. That doesn't make any sense," Schwartz wrote in 2017. "If XRP costs $1, they'd need a million XRP which would cost $1 million. If XRP cost a million dollars, they'd need one XRP which would, again, cost $1 million."
Schwartz continues to stand by this nine-year-old economic assessment. However, he has admitted he has considered deleting the original tweets due to rampant price speculation within the community.
According to the Ripple vet, the post is widely misinterpreted as a price prediction, but he insists that removing it and the context around it "would do more harm than good."
His explanation of liquidity and market depth was never meant to be taken as a guarantee of future value.
"I think it's very simple," Schwartz stated. "But somehow people seem to think it's a price prediction or evidence that XRP was designed to have a high price (whatever that even means)."
Deleting the Arbitrum posts
Earlier in the week, Schwartz deleted a series of posts regarding the Arbitrum Security Council’s controversial decision to freeze over 30,000 ETH tied to the KelpDAO exploit.
Initially, Schwartz had defended the network intervention. In fact, he actually compared Arbitrum's actions to the famous 2010 "value overflow incident."
However, he then walked back this statement and deleted the posts after "confusing Arbitrum with a different type of L2."
Q&A
What did David Schwartz say about XRP pricing in 2017?
In 2017, David Schwartz stated that XRP cannot be 'dirt cheap' if it is to manage large global transaction volumes.
Why is David Schwartz defending his 2017 XRP price comments now?
Schwartz is responding to recent accusations from an X user who claimed he was misleading the XRP community and questioned whether he would delete his old statements.
What is the significance of XRP's price according to Schwartz?
Schwartz emphasizes that XRP's price must align with its utility in facilitating significant transaction volumes, suggesting that a low price would be impractical.
