Ripple’s David Schwartz Rejects Claims of Misleading XRP Holders Over Price Comments
By Olivia Stephanie, Apr 27, 2026
David Schwartz, the Chief Technology Officer Emeritus of Ripple, has recently responded to renewed criticism regarding his comments about XRP prices made in 2017. The controversy re-emerged on social media platform X, where some members of the crypto community accused Schwartz of misleading XRP holders with his past statements.
Background of the Controversy
The debate centers on a 2017 discussion thread in which Schwartz explained liquidity dynamics related to XRP. In that thread, Schwartz argued that XRP could not be "dirt cheap" if it was to handle significant global transaction volumes effectively. He provided a simple example to illustrate how liquidity needs relate to transaction sizes and XRP’s valuation.
Specifically, Schwartz mentioned that if XRP traded at $1, a user would require one million XRP tokens to move a transaction value of $1 million. Conversely, if XRP traded at $1 million, just a single XRP token could move the same value. He concluded the explanation by stating, “It can’t be dirt cheap. That doesn’t make any sense,” highlighting the inherent relationship between liquidity and price levels.
Schwartz Clarifies His Position
Schwartz has firmly rejected interpretations that cast his 2017 post as a price prediction or promise of future XRP valuation. Instead, he reiterated that the comments were intended to clarify market mechanics such as liquidity and transaction capacity, not to set a guaranteed price target for XRP.
In his recent comments, Schwartz emphasized the simplicity of the explanation and expressed frustration that many community members continue to treat the post as evidence that XRP was designed to achieve a high price. He cautioned that deleting the original thread might remove valuable context and potentially create further misunderstanding within the community.
Additional Context: Arbitrum Posts and Deletions
The discussion gained momentum following Schwartz’s deletion of separate posts regarding Arbitrum’s decision to freeze over 30,000 ETH tied to the KelpDAO exploit. Initially, Schwartz defended the freeze and likened it to an incident in Bitcoin’s history involving a value overflow in 2010. However, Schwartz later acknowledged he had confused Arbitrum—a Layer 2 blockchain scaling solution—with a different type of Layer 2 network, which prompted him to delete the related posts. This sequence of events intensified scrutiny of Schwartz’s statements, leading to renewed debate among XRP holders on his earlier remarks.
Impact on the XRP Community
This episode highlights how commentary from years ago can continue to influence discussions and perceptions within cryptocurrency communities. Despite the controversy, Schwartz maintains that his 2017 remarks were purely educational and focused on explaining the economic and operational principles underlying XRP’s market behavior—not on predicting or guaranteeing the future price.
XRP’s current market price hovers around $1.39, with a market capitalization approaching $85.7 billion and active trading volume exceeding $1.8 billion in the latest 24-hour period.
Conclusion
David Schwartz’s recent clarification serves as a reminder of the complexities in interpreting past statements made by influential figures in the crypto industry. It also underscores the ongoing tension between market realities, community expectations, and the interpretation of technical discussions.
As XRP continues to play a significant role in Ripple’s ecosystem and the larger crypto space, transparent and clear communication remains vital to maintaining trust among holders and observers alike.
For more updates on Ripple, XRP, and the broader cryptocurrency market, stay tuned to crypto.news.