Ripple CTO once sold 40,000 ETH at $1, losing nearly $15 million

Ripple’s chief technology officer David Schwartz recently revealed that he once sold 40,000 Ethereum (ETH) for just $1 per token, which is worth about $15.4 million in today’s cryptocurrency.

Based on Ethereum’s all-time high price, the transaction is worth $53.6 million.

Schwartz explained that the decision was part of a “risk-avoidance plan” he discussed with his wife, adding that he also sold an undisclosed amount of Bitcoin (BTC) and Ripple’s XRP for $750 and $0.01 per coin, respectively.

“When I discussed investing in cryptocurrencies with my wife in 2012, at her insistence, we agreed on a plan to reduce risk. I must say that all the Bitcoin I sold at $750 and the XRP I sold at $0.01 are my pain.”

Although not aimed directly at Schwartz, the news stemmed from a comment by another Twitter user stating that “anyone who is risk averse while also promoting XRP is an exit scam.”

Schwartz replied:

“In terms of risk aversion, I’m a risk-averse person who runs things based on both finances and emotions. Fate has caused me to have a lot of eggs in one basket. My job, my fame, Ripple stock, XRP, etc. I like this basket of assets. But in the whole crypto space, these things are very risky. I’m too rational to pretend that I don’t worry about risk, and to advise others to do the same.”

Schwartz is far from the only person who has sold his cryptocurrencies for cheap in the past. Perhaps the most famous example is Laszlo Hanyecz, a programmer from Florida who also contributed to Bitcoin’s source code. In May 2010, he bought two Papa John’s pizzas for 10,000 BTC (worth about $115 million today).

While such transactions have left many cryptocurrency enthusiasts upset, these moves to sell coins at low prices arguably paved the way for Bitcoin to be used as an actual currency a decade ago. As Bitcoin developer Jameson Lopp said, the rest is history.