Ripple’s Chief Technology Officer (CTO), David Schwartz, has shared the story of how he acquired 40,000 Ethereum (ETH) tokens during the initial coin offering (ICO) in a recent revelation. This disclosure came about when a community member asked Schwartz to clarify his initial involvement with Ethereum before the public pre-ICO. The inquiry was prompted by Schwartz’s previous admission that he had sold 40,000 units of his ETH assets at $1 per ETH to fund solar panels for a house he has since sold.
What makes this revelation particularly intriguing is the fact that the value of ETH soared by 1,000% soon after Schwartz sold his holdings, causing him to reflect on his premature disposal of the assets. This contemplative look back at his decision to sell ETH at such a low price is a reminder of the missed opportunity and potential fortune he could have gained.
In response to the inquiry, Schwartz clarified that his participation in the Ethereum ICO was not solely a business decision but a personal one as well. It stemmed from his close acquaintance with Vitalik Buterin, one of Ethereum’s founders. Schwartz revealed that Buterin had invited him to participate in the ICO, and out of his desire to support Buterin, he sent 20 BTC.
Schwartz further explained that he invested this amount without delving into too many details, as his primary motivation was to support a friend. Surprisingly, for the 20 BTC he contributed to the ICO, Schwartz received 40,000 ETH in return.
This account provided by Schwartz is supported by public records. The Ethereum ICO reportedly took place over a 42-day period from July to September 2014. Early investors had the opportunity to acquire 2,000 ETH for 1 BTC or $0.31. However, as the ICO progressed, the exchange rate of ETH to BTC increased, and by the end of the token sale, 1 BTC could purchase 1,337 ETH.
It is worth mentioning that the Ethereum team announced the ICO at the North American Bitcoin Conference in Miami in early 2014. The fundraising approach employed by the team was considered innovative at the time.
Unfortunately, Schwartz missed out on a substantial fortune. He sold his 40,000 ETH tokens for approximately $12,400 when their value rose to $40,000. This resulted in a 222.58% return on investment after holding the assets for two years.
However, had Schwartz held onto his investment for an additional year, he could have witnessed an astonishing gain of 32,158%. This growth would have elevated his initial $12,400 ETH portfolio to a staggering $4,000,000.
It is important to note that this content is for informational purposes only and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinions of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions, and The Crypto Basic does not take responsibility for any financial losses incurred.