David Schwartz Rejects Meme Coin Investment Hype Around XRP Ledger’s FUZZY Token. Source: EconoTimes

Ripple Chief Technology Officer Emeritus David Schwartz has sparked debate across the XRP community after calling the idea of treating meme coins as investments “distasteful.” The longtime Ripple executive, widely known on X as JoelKatz, made the comments during a discussion surrounding the FUZZY meme coin on the XRP Ledger (XRPL).

The controversy began after Schwartz opened a technical trust line for FUZZY, leading some XRP holders to interpret the move as an endorsement of the token. However, Schwartz quickly pushed back against that assumption, explaining that opening a trust line is simply a standard function on the XRP Ledger and should not be viewed as support for any cryptocurrency project.

FUZZY takes inspiration from the historic “Fuzzybear” wallet, which became well known in XRPL history after completing one of the earliest trades involving 1 XRP for 1 BTC shortly after the network launched in 2013. Despite the nostalgic connection, Schwartz emphasized that he has no involvement with the meme coin and possesses no insider knowledge about the project.

The Ripple veteran also revealed why he avoids publicly endorsing crypto tokens. According to Schwartz, promoting projects carries the risk of unintentionally supporting bad actors or misleading investors. While he clarified that he has no negative opinion about FUZZY itself, he maintained that meme coins should not be treated as serious investment vehicles.

His comments arrive during a period of growing meme coin activity on the XRP Ledger. Tokens such as ARMY, PHNIX, and RIPPY have experienced notable price increases, helping drive trading activity on XRPL platforms like Magnetic and First Ledger.

Schwartz acknowledged that meme coins can still hold entertainment and cultural value online. However, he argued that building a long-term investment portfolio around speculative meme tokens appears irrational because these assets often rely solely on hype and market speculation rather than intrinsic value.

The remarks divided the XRP community. Some users argued that meme coin trading boosts XRP ecosystem liquidity and network engagement, while others supported Schwartz’s cautious stance and urged influencers to avoid promoting risky crypto assets.