In an exchange that has stirred conversation throughout the crypto community, Ripple’s Chief Technology Officer (CTO), David Schwartz—known by the online moniker “JoelKatz”—recently clarified that the company has no obligation to act in the interests of XRP holders. His remarks came in response to claims by prominent Bitcoin advocate Pierre Rochard, who argued that the company’s business decisions need not—and do not—prioritize XRP investors.
Ripple First, XRP Second
Rochard, a longtime Bitcoin proponent and vocal XRP critic, declared via X: “XRP isn’t a security because Ripple doesn’t actually owe you ‘utility’ or anything else. They are free to dump on you and you have no right to do anything about it other than join them in dumping XRP. That’s why XRP is not a security.”
He later added: “XRP army in disbelief. Ripple sells XRP as revenue, an operating cash inflow. It’s not financing, you are not investing in Ripple, you’re just getting tokens created out of thin air dumped on you. Ripple doesn’t owe you anything post-sale.”
Rochard’s commentary challenged the common belief among some XRP holders that the company is inherently obligated to drive XRP’s value upward or otherwise act in the token’s best interest.
In a blunt endorsement of Rochard’s stance, Schwartz replied: “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.”
Reinforcing this position, Schwartz likened the situation to owning an artist’s early work. According to the CTO: “If I hold a work from early in an artist’s career, I might hope or expect the artist makes and promotes new works that might drive demand and create markets for the early work and make me money. But the artist has no obligation to me and works of art are not securities.”
Schwartz went on to emphasize that the company’s relationship with XRP does not dissolve overnight. He remarked: “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 the only successful internet company. We are, and must be, thoroughly pro-crypto.”
The CTO’s remarks strike at the core of an ongoing debate within the XRP community. While many XRP investors hope that Ripple’s commercial success will translate to positive price action for the token, Schwartz’s statements underline that the company’s primary duty is to its own operations and shareholders—not XRP holders.
To be sure, the company’s business strategy often intersects with XRP, from leveraging the token in cross-border payment solutions to promoting blockchain-based remittance services. However, Schwartz’s comments suggest that any benefit to XRP holders could be incidental rather than mandated.
At press time, XRP traded at $2.20.
