Ripple Labs Chief Technology Officer (CTO) David Schwartz came under scrutiny following his tweet in the form of advice to crypto investors to consider selling cryptocurrencies.
“If you have a large number of crypto asset holdings, please consider selling some to reduce risk. This is not any market forecast for the future. ” @JoelKatz.
Schwartz also added that investors should reassess their income for half a year in crypto and/or ‘debt’. In fact, investors should reassess if they own half of their annual income in crypto and/or ‘debt’.
Either way, XRP has risen 850% in the last year and Bitcoin (BTC) has risen 790% to $ 63,000. At least it’s good news for long term hodlers.
The advice doesn’t seem to be just specific to investors out there. In fact, Schwartz personally applied that advice.
In a nutshell, in 2019 Schwartz admitted to having sold $ 40,000 worth of Ethereum (ETH) before a bullish peak in 2017 to buy solar panels. Following the incident, the figure expressed his regret for having sold all his holdings.
On second thought, there is truth to Schwartz’s advice. Once your risky investment has started to yield lucrative returns, it is better to turn that profit into something more stable.
As a result, retirement funds will be rebalanced annually to increase the percentage of stock -linked bonds. It locks in revenue.
However, Schwartz's tweet came while the Securities and Exchange Commission's (SEC) lawsuit hearing against Ripple Labs was still ongoing and this caused a bit of controversy. Typically firm executives will stay away from public attention because their talkative concerns can be evidence.
Again, Schwartz’s advice doesn’t just focus on XRP but instead is thrown at all cryptocurrencies be it Bitcoin (BTC), Ethereum (ETH) or others.
