David Schwartz, chief technology officer at Ripple Labs, has stated that it is “nearly impossible” to avoid selling XRP even if one wants to continue holding.
Previously, he said that “all digital asset holders can sell it if they want.”
Schwartz also previously explained the tax implications of receiving XRP from the company. For example, if Schwartz was awarded 1,000,000 XRP by Ripple, he would need to sell a significant portion of this amount to cover the outstanding taxes.
Factoring in federal (Fed) and California (CA) state taxes, the marginal tax rate on his earned income is about 50%.
Abandon the XRP ecosystem
His most recent comments came after Dev Null Productions announced its departure from the XRP ecosystem after making significant contributions for six years.
They argue that the main reason is the loss of confidence in Ripple's leadership due to the decision to sell XRP at the expense of retail investors. Additionally, they criticized the XRPL Foundation for prioritizing personal goals over community interests.
As a result, their XRP-related projects such as Ledger City will be discontinued and related domain names will be allowed to expire.
They encouraged the community to challenge what they considered “corrupt” leadership within Ripple and XRPLF. “Finally, we just want to say that there are no hard feelings and we encourage the community to stand up against corrupt leadership (both at Ripple and XRPLF) who have wasted an opportunity. great to achieve their own selfish interests,” the post read. .
What about the AMM group?
In a subsequent post on social media network X, Schwartz also responded to a user who suggested including XRP in the AMM pool.
According to the executive, when you add XRP to the AMM pool, you have to provide another asset on the other side of the pool. This means that half of the XRP will be sold as it will be paired with another asset.
Schwartz also brought up the tax implications of using XRP in an AMM group.$XRP
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