Ripple's former chief technology officer David Schwartz (데이비드 슈워츠) publicly rebutted claims that Ripple's sales of XRP directly harm token holders.

According to blockchain outlet U.Today on July 11, Schwartz said recent claims directly linking Ripple's XRP sales to investor losses were not true.

The dispute spread into a broader war of words over Ripple's business model. Pro-cryptocurrency lawyer Bill Morgan said Ripple had directly sold XRP to retail investors, and the debate began after Ripple said it had not sold in that way for years.

The back-and-forth intensified after a Chainlink executive claimed Ripple cashes in its pre-minted XRP holdings to fund operating expenses, acquisitions and shareholder returns. The executive criticised Ripple, saying each time it sells XRP, costs and risks are shifted to XRP holders while the company and shareholders benefit. The executive also said explanations that XRP is used as a bridge asset had lost force and that stablecoins such as Ripple's RLUSD had replaced that use case.

Schwartz countered that this view stems from a misunderstanding of how markets work. He said most negative outcomes depend solely on investor sentiment. If investors reasonably expect Ripple's future XRP sales to weigh on prices, that expectation is already reflected in today's market price, he said.

On that basis, Schwartz said buyers would purchase XRP at a lower price that accounts for the expected future selling and would later sell at a correspondingly lower price. He argued Ripple's sales do not separately create a structure in which holders are sacrificed, because the market prices in that possibility in advance.

The key issue is whether Ripple's XRP sales unilaterally shift losses onto holders. Critics say Ripple uses its pre-minted holdings to support operations and shareholder interests. Schwartz drew a line, saying if those concerns are valid, they are already priced in, so Ripple's sales cannot be read as a separate transfer of harm.

The debate has also exposed differences over views of XRP's role. A Chainlink representative said XRP's bridge-asset function has weakened and that stablecoins such as RLUSD are taking its place. Schwartz's rebuttal focused on price formation and investor expectations rather than functional competition.

That has led the dispute to centre on how Ripple's token sales are reflected in market prices and how investors assess XRP's usefulness and Ripple's profit structure. The debate over Ripple's business model and XRP's market role may continue for the time being.