Ripple denies 10 Billion XRP Buyback speculations

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Key takeaways:

  • The CTO of the cryptocurrency payment business Ripple, David Schwartz, has refuted rumors that the company repurchased 10 billion XRP units.
  • The rumors immediately spread outside of the XRP community once it was published by the news source CryptoAlert. 

In recent days, the cryptocurrency community has been abuzz with speculations surrounding Ripple and a potential buyback of 10 billion XRP tokens. However, Ripple, a prominent blockchain company known for its digital payment protocol, has come forward to deny these speculations. 

Ripple’s chief technology officer (CTO) and one of the original developers of the XRP Ledger, David Schwartz, has responded to recent rumours about the company’s alleged plan to buy back 10 billion XRP tokens, or 10% of the total supply and $5 billion at current prices.

The topic of buybacks is primarily associated with stocks, where a company buys back its own shares from the open market to create scarcity and potentially boost the value of the remaining shares.

Ripple, being a blockchain company, has not made any official comments specifically regarding a buyback strategy for XRP. However, the speculation surrounding this topic has prompted David Schwartz, Ripple’s CTO, to weigh in on the conversation.

Schwartz acknowledged that Ripple does engage in purchases of XRP but expressed uncertainty about whether these acquisitions align with the context being discussed in the community. 

He highlighted that the current speculation lacks an official source that substantiates the claims of a buyback. Therefore, Schwartz’s statement suggests that while Ripple does acquire XRP tokens, it may not be in the same manner or with the same intentions as the community is assuming.

The rumours surfaced a day earlier when a post on the dubious news website CryptoAlert published it as fact. The rumour swiftly caught on in the XRP community despite the dubious source and unsubstantiated information, with many influential people commenting on it.

In light of the current legal dispute between the company and the United States Securities and Exchange Commission (SEC), Ripple Labs Inc., continues to be questioned regarding its contribution to the circulating supply of XRP. 

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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