David Schwartz sold 40,000 ETH early—buying solar panels with the proceeds—turning a modest ICO profit into a practical investment. Had he held, the position would be worth roughly $188 million today, highlighting the trade-off between realized gains and long-term opportunity cost in crypto.
-
David Schwartz bought 40,000 ETH at $0.311 and sold when ETH reached $1.
-
His sale generated an early profit but forfeited a position now estimated at about $188 million.
-
Schwartz used the proceeds to install solar panels, underscoring a practical, sustainability-focused choice.
David Schwartz sold 40,000 ETH early; the missed opportunity is now ~ $188M — read why he chose solar panels and what it means for crypto investors. Learn more.
Ripple CTO David Schwartz’s early Ethereum sell-off—used to buy solar panels—remains a defining “what if” story in crypto, blending technical vision with practical lifestyle choices.
What happened when David Schwartz sold his Ethereum early?
David Schwartz sold his 40,000 ETH position after Ethereum rose from $0.311 to $1, realizing an early profit. He then used the proceeds to install solar panels, choosing a tangible, sustainable investment over holding for potential future gains.
How large was the missed opportunity in dollar terms?
Based on current market estimates, Schwartz’s 40,000 ETH would be worth approximately $188 million today. That figure reflects a total return of roughly 1,521,498% from the original ICO price, illustrating how early exits can forgo extreme long-term upside.
Why did Schwartz choose solar panels instead of holding?
Schwartz prioritized immediate, practical benefits: energy independence, reduced utility costs, and environmental impact. The decision aligns with broader tech-community interest in renewable energy and reflects a preference for converting speculative gains into lasting infrastructure.
Frequently Asked Questions
Did David Schwartz buy Ethereum during the 2015 ICO?
Yes. Schwartz purchased 40,000 ETH during Ethereum’s 2015 token offering at about $0.311 per token and sold when the price reached $1, securing an early profit.
How much profit did he make from that sale?
He realized a roughly 321.5% return on that position when selling at $1, turning the initial investment into a substantial—but ultimately smaller—sum than it would be today.
Is the $188 million figure exact?
The $188 million estimate is an approximate valuation based on current market prices for ETH and the stated 40,000-token position. Market prices fluctuate and valuations are estimates, not audited figures.
Context and Analysis
David Schwartz’s choice illustrates a common trade-off in crypto: realized gains versus long-term hold value. Many early investors have similar stories where practical needs or risk tolerance guided sales. The episode underscores timing risk and personal priorities in volatile markets.
Schwartz remains a prominent engineer and contributor to the XRP Ledger. His public anecdotes carry weight in the crypto community, not because of market outcomes alone but due to his technical influence and ongoing role in blockchain development.
How should investors interpret stories like this?
Use such stories as perspective, not prescription. They highlight behavioral finance principles: lock-in bias, regret aversion, and opportunity cost. Investors should align decisions with objectives, risk tolerance, and time horizon rather than anecdotal outcomes.
Summary Table: Original Position vs. Current Estimate
| Metric | Value |
|---|---|
| ETH purchased | 40,000 |
| Purchase price (per ETH) | $0.311 |
| Sale price used | $1.00 |
| Approx. current position value | ~$188,000,000 |
| Reported realized gain at sale | ~321.5% |
| Approx. total upside to date | ~1,521,498% |
Key Takeaways
- Practical choice: Schwartz converted crypto gains into a sustainable home improvement.
- Opportunity cost: Early sales can forgo large future returns, but also reduce exposure to volatility.
- Investor lesson: Align exits with personal goals—short-term needs may justify realized gains.
Conclusion
David Schwartz’s sale of 40,000 ETH and purchase of solar panels is a clear example of how personal priorities shape financial decisions. The episode connects themes of early cryptocurrency investment, renewable energy, and risk management. For investors, the core lesson is to define objectives and manage opportunity cost deliberately.
