Ripple CTO addressed the matter, labeling the rumors as false and casting doubt on the credibility of the news article due to the absence of an official source.
By Chimamanda U. Martha
Edited by Julia Sakovich
Updated
3 mins read
Ripple Chief Technology Officer (CTO) David Schwartz has clarified the rumors regarding the company’s potential buyback of 10 billion XRP tokens. In one of his tweet replies on June 25, Schwartz said no plans were in motion for the buyback claims.
The rumors originated from a report published by CryptoAlert over the weekend, claiming that Ripple, a San Francisco-based blockchain payments firm, intended to repurchase 10 billion of XRP from the market, a whopping 10% of the token’s circulating supply. The news sparked excitement and curiosity among the crypto community, as a buyback of such magnitude could have significant implications for the price and overall sentiment surrounding XRP.
Taking to Twitter, Ripple CTO addressed the matter, labeling the rumors as false and casting doubt on the credibility of the news article due to the absence of an official source. Schwartz emphasized that while Ripple occasionally purchases XRP, he personally has no knowledge or specific details regarding any potential buyback in relation to the claim.
We do sometimes buy XRP. But I don’t know of anything specific that this could be referring to. And there’s no official source mentioned.
— David “JoelKatz” Schwartz (@JoelKatz) June 25, 2023
Notably, John E. Deaton, a pro-crypto lawyer known for supporting XRP, expressed skepticism about the alleged buyback. Deaton stated that he would not believe Ripple’s involvement in such a significant buyback until he heard it directly from the company.
Adding to the skepticism, another prominent lawyer in the industry, Bill Morgan, raised concerns about the financial feasibility of Ripple acquiring 10 billion XRP, currently valued at $5 billion.
Morgan pointed to the ongoing legal battle between Ripple and the United States financial regulator, the Securities and Exchange Commission (SEC), as a major obstacle, noting that investors would unlikely lend funds to a company seeking to buy back a token under such legal scrutiny.
He further suggested that Ripple may need to explore alternative funding avenues, such as an initial public offering (IPO), to secure the necessary capital for such a massive buyback.
Where are they obtaining the $5 Billion to buy it at its current price. Who would lend Ripple the funds, given the lawsuit, to buy back a token under a litigation cloud – unless there is another source of funding such as an IPO. https://t.co/N1iF0BDzhQ
— bill morgan (@Belisarius2020) June 25, 2023
Earlier in February, before the recent rumors about a potential buyback, the Ripple CTO referred to a buyback theory instigated by Jimmy Vallee, the Managing Director of Valhill Capital, in 2021 as a scam and awful.
Valle revisited the theory in a recent interview, maintaining his stance that XRP has the potential to become the world’s reserve currency, urging the US government to make the dream a reality and buy up the entire token’s circulating supply from the market.
Responding to him, Schwartz said the theory looked like a scam.
“I haven’t looked at it very closely. But what I have seen looks an awful lot like a scam to me. If we’ve learned anything from 2012 and 2022, it’s that anyone promising high returns with low risk is almost certainly going to rob you,” Schwartz said.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
