- Ripple leaders transparency and logic put a stop to XRP buyback rumors.
- Fake news suggested Ripple will buy back 10 billion XRP.
- Ripple’s CTO says this is not part of their plan.
Ripple’s Chief Technology Officer (CTO), David Schwartz, and pro-XRP lawyer John Deaton responds to recent allegations. Specifically, he addresses the allegation of Ripple possibly planning a massive buyback of 10 billion XRP tokens.
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In detail, Schwartz took to Twitter to express his lack of knowledge regarding any plans for such a buyback. He emphasizes the importance of seeking official confirmation from Ripple to verify the authenticity of the claims.
Adding to this, Deaton echoes Schwartz’s skepticism. In particular, he states that he would only believe the reports if Ripple themselves confirms it. Several observers have raised doubts about the feasibility of a buyback of this magnitude.
Lawyer Bill Morgan points out Ripple’s ongoing legal battles and the reluctance of lenders to fund a token in dispute likely posing significant challenges in raising the required $5 billion for the buyback. Morgan suggests that an initial public offering (IPO) might be necessary for Ripple to execute such a plan. He also cites expert projections who value the company at over $100 billion in the event of an imminent IPO.
Furthermore, concerns have been raised about the credibility of the blog that first reported the buyback news. Twitter influencer Sentosumosaba highlights issues with the website’s registration date and the use of stock photos by the alleged team, casting doubt on its legitimacy.
Another reader notes how Ripple already holds over 50 billion XRP tokens in escrow, making a 10 billion XRP buyback seem unnecessary. The lack of specific information from Ripple regarding the alleged buyback emphasizes the need for verifiable information in the cryptocurrency industry. As of now, Ripple has not made an official statement on the matter.
Ripple’s ongoing legal battles have significant implications for the future of XRP, particularly in terms of the classification of the token. The lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Ripple alleges that the sale of XRP constitutes an unregistered securities offering. Ripple strongly denies the charges, asserting that XRP is a digital asset designed for efficient international transfers rather than a security.
The outcome of this legal action could have broader implications for the cryptocurrency industry, potentially affecting the regulatory status of other tokens. However, Ripple, its community, and the larger crypto community are expecting Ripple to walk away in victory.
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