Former Ripple CTO David Schwartz publicly pushed back against the XRP community’s push to treat meme coins as serious investment products, calling the notion “distasteful” following speculation around the FUZZY token. Schwartz made the comments during an X (formerly Twitter) discussion, where he emphasized that meme coins thrive on speculation rather than genuine utility and that building portfolios around them is unreasonable.
The controversy ignited after Schwartz opened a routine technical trust line for FUZZY on the XRP Ledger. Some XRP holders misinterpreted this standard testing action as a signal of endorsement, especially because the token’s name references the historic “Fuzzybear” wallet from Ripple’s early days. Schwartz clarified that adding a trust line is a normal operational step, not investment advice, and that he knows no more about FUZZY than an average observer.
“I do find the idea that people think of a memecoin as an investment to be distasteful,” Schwartz posted on May 18, 2026. His warning comes amid a surge in XRP-related scams. On May 14, he had already alerted XRPL users to a “huge escalation” in fake airdrops and impersonator accounts. XRP markets remain active, with active addresses reaching 48,453—highest since March 30—and spot XRP ETFs recording $60.50 million in net weekly inflows, the strongest week since late December 2025. This heightened attention amplifies the reach of meme coin rumors, making clear public disclaimers critical for XRP holders.
