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David Schwartz, CTO of Ripple, recently revealed that he bought 40,000 ETH during the Ethereum ICO in 2014. This crypto investment, made with the support of Vitalik Buterin, would be worth more than $120 million today.
A bold bet motivated by friendship with Buterin
This revelation created a real shock wave in the cryptosphere. Schwartz, personally invited by Vitalik Buterin to participate in the Ethereum pre-sale, without hesitation staked 20 BTC, driven by his desire to support his friend’s project. A bold bet that allowed him to win 40,000 ETH.
Ironically, the CTO admitted that he liquidated all his Ethers once the price reached $1 in order to afford solar panels. A decision he regrets today as ETH trades around $3000.
His initial investment of 40,000 ETH would currently be worth over $120 million. Even the initial 20 bitcoins now represent $1.3 million, enough for much larger acquisitions.
The close but tumultuous ties between Ripple and Ethereum
This anecdote highlights the intertwined history of Ripple and Ethereum. Vitalik Buterin was actually employed by Ripple before the creation of Ethereum, but had to leave his position due to visa issues.
Since then, relations have soured, particularly with the legal battle between Ripple and the SEC. Buterin has openly criticized Ripple, fearing a negative impact on Ethereum’s regulatory status. Despite this tension, Schwartz’s early investment speaks to the early connections between the two projects.
In short, this story highlights the capital importance of pioneering investments in high-potential cryptocurrencies. A too hasty liquidation can certainly lose substantial profits, but David Schwartz’s talent allowed him to support the pioneering project from the very beginning, creating an indelible connection between Ripple and Ethereum.
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I am passionate about Bitcoin, I love exploring the intricacies of blockchain and cryptocurrency and sharing my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.
