A recent post by renowned cryptocurrency analyst Good Morning Crypto (@AbsGMCrypto) has reignited discussions around Jed McCaleb’s departure from Ripple and the formation of Stellar. The post highlighted insights from Ripple’s CTO, David Schwartz, who provided an inside look at McCaleb’s exit and the subsequent launch of Stellar.
Schwartz’s View on McCaleb’s Departure
David Schwartz detailed that Jed McCaleb’s departure from Ripple stemmed from differences with the company’s Board of Directors. According to Schwartz, McCaleb proposed ideas that were ultimately rejected by the board. Unable to implement his vision within Ripple, McCaleb left to found Stellar, a project based on some of those very ideas.
One of Stellar’s initial moves was to conduct a large-scale giveaway, a concept McCaleb had also proposed while at Ripple. However, Schwartz described this initiative as a failure, and later, Stellar pivoted to a model resembling Ripple’s, leading Schwartz to characterize Stellar as “a clone of Ripple.”
Another significant point raised by Schwartz was McCaleb’s attempt to rapidly sell his XRP holdings. Ripple intervened legally, preventing McCaleb from offloading his XRP at a time when the asset’s valuation was much lower. Schwartz explained that without Ripple’s intervention, McCaleb might have sold his XRP for a fraction of its current value, which eventually rose to over $1 billion.
Schwartz also criticized McCaleb’s public approach to internal disagreements. Instead of accepting Ripple’s leadership decisions, McCaleb chose to publicly criticize the company and start a competing project. Schwartz viewed these actions as unethical, contributing to the ongoing rivalry between Ripple and Stellar.
Community Reaction and Schwartz’s Clarification
Following Schwartz’s comments, community member Dane responded on X, emphasizing that Schwartz’s remarks were not a critique of Stellar’s current status or prospects. Dane pointed out that Schwartz had clarified his criticism was aimed at McCaleb’s actions, not the current development of Stellar.
100%. If you think what Jed did somehow renders Stellar/SDF evil or deserving of scorn, that argument almost equally applies to XRPL/Ripple.
— David "JoelKatz" Schwartz (@JoelKatz) February 11, 2025
Schwartz responded affirmatively, reinforcing that his criticism should not be used to tarnish the reputation of the Stellar Development Foundation (SDF). He acknowledged that Ripple and Stellar have taken separate paths and should be judged on their own merits, independent of McCaleb’s departure.
David Schwartz’s perspective sheds light on the internal conflicts that led to the creation of Stellar. His clarification underscores that Stellar’s current standing should not be overshadowed by its founder’s actions. As Ripple and Stellar continue to grow, their futures will ultimately be shaped by their technological developments and real-world applications, rather than the historical disagreements of their founders.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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