Ripple’s CTO, David Schwartz, reveals the tough reality: selling XRP is almost unavoidable due to tax hurdles. Meanwhile, Dev Null’s exit and XRPL’s controversies add fuel to the fire. Can XRP weather the storm? Legal battles, SEC fines, but XRP’s resilience remains intact. Let’s see what the CTO has to say on XRP’s selling spree controversy.
It’s All About Tax Implications…
Schwartz has recently addressed the challenge faced by XRP holders when it comes to selling their coins. According to Schwartz, it’s extremely difficult for XRP holders to avoid selling their holdings, especially when considering tax obligations. He emphasized that even if individuals want to continue holding XRP, they may still need to sell a portion of their holdings to cover taxes.
Schwartz’s words come at a time when the XRP community is very worried. For example, Dev Null Productions, which was a big part of the XRP ecosystem for six years, is leaving. When Dev Null Productions made their statement, they said they had lost faith in Ripple’s leadership and criticized the company’s choice to sell XRP at the expense of small investors.
In addition, they were upset that the XRPL Foundation put personal goals ahead of group interests. So, they stopped working on projects connected to XRP and told the community to stand up to what they saw as corrupt leadership in Ripple and the XRPLF.
CTO Advises Caution
In the meanwhile, Schwartz also talked about a user’s idea to put XRP into automatic market maker (AMM) pools. He said that to add XRP to an AMM pool, it needs to be paired with another asset, which means that half of the XRP has to be sold. Schwartz also talked about the possible tax effects of using XRP in AMM pools and warned users that these kinds of trades are taxable.
Overall, Schwartz’s remarks shed light on the complexities and challenges faced by XRP holders in navigating tax obligations and regulatory uncertainties within the crypto space.
