David Schwartz, the chief technology officer (CTO) at Ripple, has recently aired his opinion on the controversial XRP buyback proposal, stating that it “looks an awful lot like a scam.
Schwartz shared this in a tweet yesterday after a supposed XRP community member asked him to comment on the raging controversy related to the XRP buyback theory.
Read Also: Ripple Says It’s More Confident Than Ever Ahead of Judge’s Decision on XRP Lawsuit
According to the veteran developer, although he hasn’t had time to look at the proposal very closely, it looks more like a scam. Referencing unspecified incidents that happened in 2012 and 2022, he said promising a high return with low risk is “almost certainly” a scam.
David Schwartz tweeted, “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.”
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.
— David "JoelKatz" Schwartz (@JoelKatz) February 5, 2023
XRP Buyback Theory
It’s worth noting that the controversial XRP buyback theory was introduced by Valhil Capital’s managing director, Jimmy Vallee, in 2021. The initiative is based on the belief that the digital token will become the world’s reserve currency as national debt surges across the globe.
As opined by Vallee, in order to make the dream a reality, large quantities of XRP have to be held by governments, which will propel a need for the infamous buyback.
Read Also: Legal Expert Suggests XRP Could Skyrocket Like LBC Token If SEC Lawsuit Ends in Ripple’s Favor
He further stated that the XRP buyback will not play out in the secondary markets due to the model of the Bretton Woods agreement, where the dollar was backed by gold.
Valhil Capital executive emphasized that the buyback will be made to happen at a fixed rate like gold. Vallee places the rate between $37,500 and $50,000 per XRP, citing the global wealth and fixed XRP supply.
The proposal became a trending discussion within the XRP community once again after a recent Vallee interview and a leaked document containing the core terms of the buyback theory.
Follow us on Twitter, Facebook, Telegram, and Google News
