Ripple pours billions of dollars into purchasing XRP from secondary markets.
Leading blockchain company Ripple Labs has played a significant role in the sustainability of XRP price. The value of XRP has plunged heavily following the SEC’s charges against Ripple and two of its executives – Brad Garlinghouse (Ripple CEO) and Chris Larsen.
The SEC alleged that Ripple and its execs conducted unregistered securities offerings in the US that helped them raise over $1.2 billion. Both the SEC and Ripple have been in a heated legal battle for more than two years. The ongoing lawsuit has wreaked havoc on the price of XRP, which has plunged 87.9% from an all-time high of $3.4, Coingecko data shows.
Ripple Commits Billions Buying Back XRP
Despite XRP’s lower price, Ripple has continued to commit billions of dollars to purchase the cryptocurrency asset from the secondary market. According to data shared by Blockworks, Ripple Labs has spent nearly 75% of the revenue generated from the sale of XRP on buying the tokens back from secondary markets.
Blockworks noted that while Ripple has publicly reported a total of $11.1B in ODL-related XRP sales from the beginning of 2021 to the end of 2022, the company has spent $8.4B buying back the token from secondary markets to meet the needs of its ODL clients.
As reported earlier, Ripple’s XRP sales in Q4 were around $2.96 billion. Interestingly, the company bought back about $2.73B worth of XRP from secondary markets in the same quarter. Ripple said it would continue to buy back XRP from secondary markets as long as the ODL service gains global adoption.
The move is part of efforts being made by Ripple Labs to sustain XRP markets and to shield holders of the token from suffering further losses.