Ripple CTO and prominent figures in the XRP community have argued against the report of a 10 billion XRP buyback, questioning the source’s credibility.
In response to recent claims of Ripple planning a massive 10 billion XRP buyback, Ripple’s Chief Technology Officer (CTO), David Schwartz, has denied the report. Schwartz stated on Twitter that Ripple had no official confirmation, questioning the source’s credibility.
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
Notably, the Ripple CTO’s comment replied to a tweet by pro-XRP lawyer John Deaton who first expressed skepticism on Twitter regarding the purported XRP repurchase.
“I don’t believe Ripple is buying back 10B XRP until I hear it from Ripple,” the lawyer remarked.
Ripple Has No $5b to Buy 10B XRP
Deaton’s doubts triggered further inquiries into the matter as concerns within the crypto community continued to mount.
I don’t believe @Ripple is buying back 10B #XRP until I hear it from Ripple.
— John E Deaton (@JohnEDeaton1) June 24, 2023
Another prominent lawyer Bill Morgan questioned the financial feasibility of such a massive buyback.
Morgan raised concerns about the availability of $5 billion required for the purchase, given Ripple’s ongoing legal battles and the reluctance of lenders to provide funds for a token under litigation.
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
He suggested that an alternative funding source, such as an initial public offering (IPO), might be necessary for Ripple to execute such a plan. As The Crypto Basic reported, experts have predicted that Ripple’s IPO could come within a year with a valuation of over $100 billion.
The Source of the News Is Questionable
Over the weekend, a blog claimed Ripple announced buying back 10 billion XRP from the current circulating supply without mentioning any source. A well-known XRP influencer Sentosumosaba pointed out flaws in the website that published the article.
Sentosumosaba highlighted that the website was registered in June 2023, about the same day the article was published. Additionally, its supposed team was discovered to use stock images found on other sites, raising suspicions about its authenticity.
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
Further questioning the alleged buyback, another commentator questioned such motives, considering Ripple’s existing holdings of around 50 billion XRP tokens in escrow, making the alleged buyback illogical.
The ongoing uncertainty surrounding Ripple’s rumored buyback serves as a reminder of the importance of substantiated information. Notably, Ripple is yet to make any official comment at the time of writing.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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