"Don't invest in Ripple"… The warning from XRP co-founder prompts a reassessment of relationships

Ripple (XRP) Co-Founder David Schwartz publicly stated, “It’s best not to invest directly in Ripple,” which drew market attention. Given that internal core figures of the company instead advise caution regarding “Ripple investments,” existing perceptions surrounding the relationship between XRP and Ripple have once again come under scrutiny.

According to CoinTelegraph’s report on the 13th local time, when the community requested “let us access Ripple stock,” Schwartz responded, “If you want to be directly exposed to Ripple’s success or failure, you can buy Ripple stock over-the-counter when conditions are right, but perhaps it’s best not to do so.” This post quickly garnered tens of thousands of views and was widely circulated after being publicly posted.

The significance of this remark lies in the fact that it comes from someone familiar with Ripple’s internal situation, serving as an unusual warning. Since Ripple is not a publicly listed company, ordinary investors cannot invest based on publicly available stock prices. Instead, some investors have long regarded XRP as an indirect bet on Ripple. However, Schwartz’s statement effectively puts a brake on the view that equates XRP with Ripple as the same entity.

Ripple once held 80% of the total XRP supply, and as of January 4, 2018, the value of XRP held by Ripple reached as high as $180 billion. Although this holding has gradually decreased since then, the company’s valuation and its XRP holdings have continued to be correlated. Currently, the valuation of Ripple’s equity traded over-the-counter is estimated at about $19 billion, which is lower than the valuation Ripple reportedly proposed two months ago.

Schwartz, along with Arthur Brito, co-designed the XRP ledger in June 2012. He is a founding-level figure of Ripple and has the most insight into Ripple’s early development and equity structure. He has previously sold large amounts of XRP and stated that Ripple’s equity currently constitutes a significant portion of his personal cryptocurrency investments. Given this background, some interpret his warning about “Ripple investments” not as a simple personal opinion but as a stronger signal to the market.

Ultimately, this statement serves as a reminder to investors who equate XRP with Ripple that a clear distinction is necessary. As Ripple’s corporate valuation, XRP holdings, and over-the-counter stock prices are intertwined, the relationship between these two assets will continue to be a focus of market interpretation.

Summary by TokenPost.ai 🔎 Market Analysis: Ripple co-founder’s “investment restraint” remarks signal a crack in the existing market perception that equates XRP with Ripple. Given that an insider personally mentions risks, this may temporarily impact investor sentiment and trigger caution. The correlation between Ripple’s enterprise value and XRP price may gradually weaken. 💡 Strategic Points: It must be clearly recognized that XRP is not a substitute for Ripple stock. OTC Ripple stock faces liquidity, accessibility, and information asymmetry risks. A method of separately analyzing enterprise value (Ripple) and token value (XRP) is necessary. The insider’s comments may not be short-term noise but signals of structural cognitive change. 📘 Terminology Explanation: Ripple: A non-listed company developing a payment network and XRP ecosystem. XRP: A digital asset used on the XRP ledger, an investment object independent of Ripple. OTC Market (Secondary Market): A market where unlisted stocks are traded between individuals, with access restrictions. Enterprise Valuation: The total value of a company assessed through investment rounds or transactions.

💡 Frequently Asked Questions (FAQ)

Q. Why does Ripple co-founder advise against investing? David Schwartz explains that directly exposing oneself to Ripple’s performance through investment structures may not be suitable for ordinary investors. Especially given the characteristics of unlisted stocks, with information asymmetry and access restrictions, this is interpreted as a cautionary signal. Q. Is buying XRP equivalent to investing in Ripple? No. XRP is an independent digital asset, while Ripple is the company using it. Although the two assets may influence each other, they are not the same investment object, and their valuation methods differ. Q. Can ordinary investors buy Ripple stock? Ripple is a non-listed company, so it is not traded on regular stock markets. Only qualified investors can conduct limited trading on certain OTC platforms, with low accessibility and higher risks.

TP AI Notes: This article summary is generated based on the TokenPost.ai language model. Key content may be omitted or factually inaccurate.