Ripple CTO denies 10 billion XRP buyback rumors.

The Chief Technology Officer (CTO) of Ripple, David Schwartz, has denied rumors about the company’s potential buyback of 10 billion XRP tokens. In a tweet on June 25, Schwartz said that there were no plans for such a buyback.

These rumors began with a report from CryptoAlert, claiming that Ripple, a blockchain payments firm based in San Francisco, intended to repurchase 10 billion XRP from the market, which is 10% of the token’s circulating supply. This caused excitement and curiosity among the crypto community as such a large buyback could have significant implications for the price and overall sentiment surrounding XRP.

However, Schwartz called the rumors false and cast doubt on the credibility of the news article due to the absence of an official source. He emphasized that while Ripple occasionally purchases XRP, he has no knowledge or specific details regarding any potential buyback in relation to the claim.

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

Investors May Be Unwilling to Lend Ripple Funds to Buyback XRP

John E. Deaton, a pro-crypto lawyer known for supporting XRP, expressed skepticism about the alleged buyback. Deaton stated that he would not believe Ripple’s involvement in such a significant buyback until he heard it directly from the company.

Another prominent lawyer in the industry, Bill Morgan, raised concerns about the financial feasibility of Ripple acquiring 10 billion XRP, currently valued at $5 billion.

Morgan pointed to the ongoing legal battle between Ripple and the United States financial regulator, the Securities and Exchange Commission (SEC), as a major obstacle, noting that investors would unlikely lend funds to a company seeking to buy back a token under such legal scrutiny.

He further suggested that Ripple may need to explore alternative funding avenues, such as an initial public offering (IPO), to secure the necessary capital for such a massive buyback.

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

David Schwartz Calls Vallee’s Proposed Buyback Theory Scam

In February, before the recent rumors about a potential buyback, the Ripple CTO referred to a buyback theory instigated by Jimmy Vallee, the Managing Director of Valhill Capital, in 2021 as a scam and awful.

Valle 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 up the entire token’s circulating supply from the market.

Responding to him, Schwartz said the theory looked like a scam.

“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,” Schwartz said .

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