The SEC’s legal battle with Ripple has been a hot topic for over two years, with the agency asserting that XRP is a security. This has sparked concerns about the future of XRP and its potential for development.
Ripple, the San Francisco-based fintech company, is rumored to be considering a $10 billion XRP repurchase. However, skeptics, such as lawyer John E. Deaton, are skeptical of these rumors and are advising the community to wait for official confirmation from Ripple.
Ripple CTO David Schwartz has denied rumors that the company is planning to buy back 10 billion XRP tokens. The tokens, which are now valued at $5 billion, would account for 10% of the total XRP supply.
Ripple CTO David Schwartz recently took to Twitter to clarify the rumors about a $5 billion XRP buyback. He said that while Ripple does purchase XRP from time to time, there are no specific buyback plans at this time. He also pointed out that there is no official source to support these rumors.
We do occasionally purchase XRP. However, I am not aware of anything specific that this could be referring to. Additionally, there is no official source cited, he tweeted.
The rumors that Ripple was purchasing back 10 billion XRP were sparked by a dubious report published by CryptoAlert. Despite the dubious source and lack of proof, the article was rapidly taken up by the XRP community.
Ripple has been forthcoming about its XRP acquisitions. According to the company’s financial records, it has been purchasing XRP on the open market to assure an adequate supply for its ODL service. Ripple further emphasizes that it limits the amount and sources from which it purchases XRP to reduce its possible market exposure.
Ripple has a significant stake in the XRP ecosystem, with over 41.9 billion tokens currently in its accounts. These tokens are essential to Ripple’s success, providing the liquidity and security that its financial services need to thrive.