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- No XRP was destroyed — only some early transaction history was lost.
- XRP had zero value in 2012, making any “loss” insignificant.
- Ripple’s current holdings remain fully visible on the blockchain.
Ripple’s Chief Technology Officer, David Schwartz, has put to rest one of the oldest myths in the XRP community — that hundreds of transactions in the cryptocurrency’s early days resulted in a permanent loss of XRP. The claim centered on 534 transactions from XRP’s original 2012 premine of 100 billion coins, which critics believed were wiped out by a technical glitch.
In an interview with Decrypt, Schwartz clarified that while some historical transaction data from the early blockchain ledgers is missing, no actual XRP disappeared. Ripple’s holdings remain transparent and verifiable on the public blockchain.
XRP Had Zero Market Value in 2012
Schwartz noted that in 2012, XRP had no market price, making the “loss” financially insignificant. “It had literally zero value,” he said. In those days, Ripple often distributed random amounts — such as 35,000 coins — to early testers.
The XRP Ledger was also reset several times during its development phase, a common practice when protocol changes were implemented. These resets sometimes erased parts of the historical record, but the current balances of all accounts were preserved.
No Coins Were Actually Destroyed
While some early transaction histories are incomplete, the underlying XRP tokens still exist and can be traced back to Ripple’s founders if they originated from the premine. Schwartz stressed that Ripple still held around 99.9% of all XRP at the time of the supposed “loss,” meaning the number of coins in question was minimal.
Public blockchain tools today allow anyone to verify Ripple’s current holdings. As Schwartz explained, “All the balances are visible, and it’s known whether they were funded from the founders of Ripple.”
Also Read: SEC and Ripple End Legal Battle After Nearly 5 Years — What It Means for XRP
Misunderstanding, Not Misconduct
Schwartz’s comments underscore that the “lost XRP” narrative stems from misunderstandings of blockchain development history rather than any wrongdoing. The early ledger resets were routine, the affected amounts were negligible, and no tokens were destroyed.
By directly addressing the myth, Ripple aims to reinforce trust in XRP’s transparent supply records — a crucial factor for both investors and the broader crypto community.
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
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
