Ripple CTO addressed the matter, calling the rumors false and doubting the credibility of the news article due to the absence of an official source.
Wave Chief Technology Officer (CTO) David Schwartz has clarified rumors about a possible buyback of the company’s 10 billion XRP tokens. In one of his tweet replies on June 25, Schwartz said that no plans for buyback claims were in motion.
The rumors originated from a report published by CryptoAlert over the weekend, which claimed that San Francisco-based blockchain payments firm Ripple intends to buy back 10 billion XRP from the market, which is 10% of the coin’s circulating supply. The news sparked excitement and curiosity among the crypto community, as a buyback on such a large scale could have a significant impact on the price and overall sentiment surrounding XRP.
Addressing the matter on Twitter, Ripple CTO called the rumors false and doubted the credibility of the news article due to the absence of an official source. Schwartz Emphasizes That Ripple Makes Occasional Buys XRPHe personally has no information or specific details regarding any potential buyback in relation to the claim.
We occasionally buy XRP. But I am not aware of any specific thing that may be referred to. And no official source is cited.
— David “JoelKatz” Schwartz (@JoelKatz) 25 June 2023
Investors May Not Be Willing To Lend Ripple Funds To Buyback XRP
Notably, John E. Deaton, a pro-crypto advocate known for supporting XRP, expressed skepticism about the alleged buyback. Deaton said he would not believe Ripple was involved in such a significant buyback until he heard about it directly from the company.
Adding to the doubts, Bill Morgan, another prominent advocate of the industry, raised concerns about the financial viability of Ripple acquiring 10 billion XRP, which is currently valued at $5 billion.
Morgan pointed to continue legal battle between Ripple and the United States financial regulator, the Securities and Exchange Commission (seconds), as a major hurdle, given that investors would not lend money to a company seeking to buy back tokens under such legal scrutiny.
He further suggested that Ripple may need to explore alternative funding avenues such as an initial public offering (IPO) in order to secure the necessary capital for such a large buyback.
Where are they getting $5 billion to buy it at its current price? Given the lawsuit, who will lend funds to Ripple to buy back tokens under the cloud of litigation – unless there is another source of funding like an IPO. https://t.co/N1iF0BDzhQ
— Bill Morgan (@Belisarius2020) 25 June 2023
David Schwartz calls the Valley’s proposed buyback theory a scam
Earlier in February, well before the recent rumors about a possible buyback, Ripple CTO called the 2021 buyback theory floated by Jimmy Vallée, MD of ValHill Capital, as a scam and scary.
Vale 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 the entire circulating supply of the token from the market. Did.
Responding to them, Schwartz said that this theory looks like a scam.
“I haven’t seen it very closely. But what I saw looks like a terrible scam to me. If we’ve learned anything from 2012 and 2022, it’s that anyone promising high returns with low risk is definitely going to rip you off,” Schwartz Said,
Chimmanda is a crypto enthusiast and experienced writer with a focus 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.
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