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David Schwartz, Ripple’s chief technology officer, lost more than $ 300,000 after investing in assorted altcoins.
David Schwartz has lost a lot of cryptocurrencies in recent years
Crypto space can be quite speculative. In fact, it is often said that people who choose to invest in cryptocurrency should be prepared (somewhat) to lose their entire investment. The volatility of cryptocurrencies and the vulnerability of space to hackers and malicious actors are two of the biggest contributors to the loss of crypto funds.
However, sometimes he can just make the wrong decisions. Choosing shoddy coins to invest in or not taking enough risks when there is an opportunity. This, Schwartz says, is what has largely contributed to his huge losses over the years.
The news first appeared on Quora, a platform where people can ask random questions and anyone can potentially get on board and provide answers based on their unique knowledge of the situation or whatever experience they may possess. Someone had asked if people had potentially lost money when trading BTC or other cryptocurrencies. Although many people stepped in and provided answers, one stood out. It came from David Schwartz, who happens to be the only person there who made a career with cryptocurrencies.
Schwartz said he made several bad investments in coins that either didn’t work or were weak from the start. Among the currencies he had chosen were TIX, DICE, FLASH, VEZT, KIND, PRYZE and KUDOS, just to name a few, which at the time of writing this article were deemed useless by various industry experts.
The funny thing is that many of these coins have enjoyed special bullish runs in the past, most of which occurred in 2017, a year in which many cryptocurrencies were reaching for the stars. The following year, however, many of these currencies fell to low prices and have since refused to rise.
Schwartz is a leader in the crypto space, but it’s not the first time in the past that he talks about his poor investment decisions. In October, for example, he posted a message on Twitter claiming that he sold about 40,000 ether units for about $ 1 each in 2012. Today, those units would be worth a grand total of over $ 18 million.
He also sold quite a bit of bitcoin for just $ 750 and several units of XRP – the currency behind Ripple – for around ten cents each, a decision he very much regretted.
Insufficient risk?
His tweet reads:
My decision to reduce risk was made around 2012 when I discussed investing in cryptocurrencies with my wife. He insisted on agreeing on a risk reduction plan at the time, and I have to say that every bitcoin I’ve sold for $ 750 or XRP units for $ 0.10 hurts.
