The cryptocurrency market saw most major coins fall considerably on April 21 as Bitcoin [BTC], the world’s largest cryptocurrency, registered a dip in prices. XRP, the third largest cryptocurrency on CoinMarketCap, also faced the brunt of BTC’s dip. XRP’s bear market has contributed to many XRP enthusiasts doubting their position. This was reflected in a tweet by a Twitter user, claiming to have seen the ‘biggest warning sign’ for XRP hodlers.
Twitter user @hlnoooo tweeted,
“Warning to all $XRP holders.
Ripple CTO @JoelKatz recently selling his $XRP stack is the biggest warning sign one could ever get. This is the most bearish sign for $XRP I have ever witnessed since beginning of ’17.”
The user further attached a warning for all crypto users, asking them to “get out now.”
Apart from Ripple’s CTO, David Schwartz, selling his XRP, the user observed a similar trading behaviour with another “Ripple employee,” who was also selling his/her XRP over the past few days. The SEC’s ‘Framework for Analysis of Digital Assets,’ hinting at a possibility of XRP being termed as a security in the long-term was speculated to be the reason behind the sale of these XRPs.
The user also cited an old tweet by Schwartz, where the CTO spoke about the ‘de-risking strategy’ he came up with his wife during the previous bull run. Schwartz’s tweet read,
“I hold some XRP that I bought on the open market over the years as well as other similar assets. When I first chose to put money in, I agreed on a de-risking strategy with my wife should we ever have too much at risk, which I’ve been following with some sadness.”
The user took this as an indication of the risk associated with owning XRP. He further stated that the bear market, coupled with the news of the CTO selling a part of his XRP was worrisome and bearish for the community.
However, Schwartz was quick to clarify his position and stated that he was still following the ‘de-risking strategy.’ He added,
“What helped me not to be so sad selling during the bull run was thinking how happy I’d be if I regretted my decision, but it still hurt.”
Schwartz’s informed @hlnoooo that a majority of his liquid assets was still XRP and that a majority of “illiquid assets was still Ripple stock.” He claimed to be deep in the game whether he “wanted to or not.” The CTO also spoke about the amount of risk he and his wife were in and the realization they had about how there was nothing to be done fundamentally. He concluded by saying,
“All my eggs are in one basket, but I do like the basket.”
Subscribe to AMBCrypto’s Newsletter
Mt. Gox rehabilitation update: Users could get a portion of their Bitcoins [BTC] back
Namrata is a full-time journalist and is interested in covering everything under the sun, with a special focus on the crypto market.