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.

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

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

The post Ripple CTO Reveals Reason Behind Ethereum Pre-ICO Investment Amid ETH Gate Feud appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am