Cover image via U.Today

David Schwartz, chief technology officer at Ripple Labs, has mentioned that selling XRP is extremely difficult, even for those who wish to hold onto it.

In a previous statement, Schwartz pointed out that anyone holding a digital asset has the option to sell it if they choose to do so.

Schwartz also explained the tax consequences of receiving XRP as income. For example, if he were to receive a bonus of 1,000,000 XRP from Ripple, he would need to sell a considerable portion of it to cover the taxes owed. This is because his marginal tax rate for earned income, including federal and California state taxes, is approximately 50%.

Exiting the XRP Ecosystem

Recent statements from Schwartz followed a decision by Dev Null Productions to leave the XRP ecosystem after six years of significant contributions. They mentioned losing faith in Ripple's leadership, accusing them of selling XRP to the detriment of retail investors. They also criticized the XRPL Foundation for focusing on personal interests rather than community objectives.

As a result, projects related to XRP like Ledger City will be halted, and associated domains will be allowed to expire. They urged the community to challenge what they perceive as corrupt leadership at Ripple and XRPLF.

Addressing AMM Pools

In another post on the X social media network, Schwartz responded to a user's suggestion regarding placing XRP into AMM pools. Schwartz explained that when XRP is added to an AMM pool, it needs to be paired with another asset, leading to the sale of approximately half of the XRP.

Moreover, Schwartz pointed out the tax implications of using XRP in AMM pools, suggesting that such transactions could be considered taxable events for Ripple.