Ripple’s Chief Technology Officer (CTO), David Schwartz, and pro-XRP lawyer John Deaton have both spoken out in response to recent allegations that Ripple has plans to initiate a 10 billion XRP buyback.
Schwartz said in a tweet that he knows nothing about the firm’s plan for the whopping repurchase of XRP. He added that the official source to review its authenticity.
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
Read Also: Ripple CTO Highlights How Bitso Facilitates Billions in XRP Remittances Without Operating in the US
Deaton reiterated Schwartz’s skepticism, saying that he would only believe the stories if Ripple confirmed them personally.
— James Rule XRP 👊😎 (@RuleXRP) June 24, 2023
Other observers have questioned the financial viability of such a huge buyback. Lawyer Bill Morgan stated that given Ripple’s ongoing legal challenges and lenders’ unwillingness to supply funding for a token under dispute, the business would struggle to raise the $5 billion required for the buyback.
Morgan said that an IPO could be required for Ripple to carry out such a plan, citing expert projections that an imminent IPO could value the company at more than $100 billion.
To add to the skepticism surrounding the rumored buyback, a blog that first reported the news had dubious reliability. Sentosumosaba, an XRP influencer on Twitter, raised concerns about the website’s registration date and the use of stock pictures by the alleged team, raising doubts about its validity.
TheCryptoAlert site that published the $10B Ripple Buyback article was registered June 2023 (all the "Who Is" is open). They've published 7 articles (first 3 days ago). Twitter link (from site) began June, no tweets. The team is stock images used on other sites. Nothing credible. pic.twitter.com/arIjMVZp1e
— 🌸Crypto Eri 🪝Carpe Diem (@sentosumosaba) June 25, 2023
Another reader pointed out that Ripple already has over 50 billion XRP tokens in escrow. So, rendering a 10 billion XRP buyback makes no sense.
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
The lack of specific information from Ripple regarding the rumored buyback underscores the need for verifiable information in the cryptocurrency industry. Ripple has yet to make an official statement on the subject as of today.
Read Also: Thinking Crypto Podcast Host Gets Eyes On XRP for Bullish Trend Once Ripple Wins Lawsuit
Ripple’s Legal Battles and the Future of XRP
Ripple’s continuing legal challenges may have consequences for the future of XRP, particularly when it comes to token classification difficulties. The Securities and Exchange Commission (SEC) of the United States has launched a lawsuit against Ripple, alleging that the company’s sale of XRP is an unregistered securities offering. Ripple has strenuously refuted the charges, claiming that XRP is a digital asset used for faster and easier international transfers rather than security.
The outcome of this action might set a precedent for the whole cryptocurrency business, perhaps affecting the regulatory status of other tokens (no pun intended). This court dispute may also have an impact on Ripple’s IPO aspirations, since investors may be hesitant to participate in a firm that is entangled in litigation.
Despite these obstacles, XRP has maintained its popularity in some areas. Its low cost and transaction speed make it an appealing option for cross-border payments, and some investors see it as a more reliable alternative to other volatile cryptocurrencies. However, like with any fitment, individuals should perform their research and consider potential risks before making a decision.
Follow us on Twitter, Facebook, Telegram, and Google News
