u.today
Ripple CTO David Schwartz's recent disclosure has sparked widespread intrigue within the cryptocurrency community, shedding new light on his early involvement in Ethereum and the significant gains he accrued. Schwartz revealed that he secured a substantial 40,000 ETH during Ethereum's pre-ICO phase, a move spurred by his acquaintance with Ethereum's founder, Vitalik Buterin.
Schwartz's entry into Ethereum predates its public pre-ICO, with Buterin extending a personal invitation for him to participate. Motivated by a desire to support Buterin, Schwartz invested 20 BTC without much deliberation, resulting in the acquisition of the substantial ETH holdings.
The other part of this story was previously known. Many times before, the Ripple CTO has said that he sold this colossal amount of altcoins as soon as the price reached $1 and used it to buy solar panels for his home. While this move may raise eyebrows, Schwartz brushed off concerns, attributing it to a common experience among early crypto adopters, citing missed opportunities such as Bitcoin's meteoric rise.
I knew Vitalik. He invited me to participate. 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.
— David "JoelKatz" Schwartz (@JoelKatz) May 10, 2024
The intertwining histories of Ripple and Ethereum add complexity to the narrative. Buterin's stint at the company, cut short due to visa complications, underscores the connections between the two projects. Yet, tensions have arisen in recent years, exacerbated by Ripple's legal battle with the SEC. Buterin's criticisms of Ripple's actions and their potential implications for Ethereum's regulatory standing have further strained relations.
As of now, the astronomical rise in Ethereum's value, currently hovering around $3,000 per ETH, places Schwartz's early investment at a staggering $120 million valuation. Even the initial 20 BTC used to purchase ETH is now valued at $1.3 million.