Holding XRP: A Challenge Highlighted by Ripple's CTO and Community Concerns
Ripple CTO says holding XRP tough, amid community rift and tax hurdles
Ripple Labs' CTO, David Schwartz, emphasizes the difficulty of holding XRP without selling, pointing to unavoidable circumstances that lead owners to sell.
This reflects the broader challenge of managing digital currencies, where the option to sell is always open to asset holders.
Tax burdens necessitate selling XRP, Schwartz notes, using a scenario where receiving a large XRP bonus requires him to sell half due to the heavy tax rates in California, around 50%. This illustrates how taxes force digital asset owners to part with their holdings, even if they prefer to keep them.
Dev Null Productions exits the XRP community, citing a loss of trust in Ripple’s leadership and accusing them of acting against retail investors' interests.
Their departure underlines significant dissatisfaction within the XRP community, with projects being discontinued and calls for resistance against Ripple and XRPL Foundation's leadership.
Schwartz also discusses XRP in Automated Market Makers (AMM) pools, explaining that contributing XRP requires another asset, effectively selling half the XRP.
He suggests such transactions might incur taxes for Ripple, highlighting the complexities of engaging with AMM pools and the tax implications.
In summary, Schwartz's comments on the inevitability of selling XRP, coupled with the departure of a notable developer group over leadership concerns, spotlight the challenges within the XRP ecosystem.
These issues range from personal financial pressures to broader governance and community trust problems, reflecting the complex dynamics of cryptocurrency management and community engagement.
