Cryptocurrency NewsUnconfirmed reports say Ripple considering buying back 10 billion XRP, skeptics doubtful

Unconfirmed reports say Ripple considering buying back 10 billion XRP, skeptics doubtful

Speculation is spreading that Ripple, a fintech company based in San Francisco, is contemplating a buyback of 10 billion XRP. However, skeptics like lawyer John E. Deaton have cast doubt on these rumors. Deaton took to social media to express his skepticism, emphasizing the need for an official confirmation from Ripple before believing the buyback news.

Awaiting clarification from Ripple, Deaton, a crypto lawyer, expressed his doubts on Twitter, indicating that he would only accept the buyback news as valid once it is officially validated by Ripple. The potential buyback carries significant implications for both the company and the broader XRP community.

To begin with, it would demonstrate Ripple’s confidence in XRP, implying that the company perceives the coin as currently undervalued and anticipates its future value to increase. Such confidence could enhance investor sentiment, potentially driving up demand and exerting upward pressure on XRP prices.

Secondly, buybacks typically result in a reduction of circulating tokens. With fewer XRP available on the market, prices could rise, assuming demand remains stable or grows. This outcome aligns with the fundamental economic principle of supply and demand, where a decrease in supply, coupled with constant or increasing demand, typically leads to a surge in price.

Regarding Ripple’s XRP sales, the company recently disclosed that its sales amounted to $361.06 million. However, Ripple has been progressively decreasing its XRP sales, as indicated in its Q4 2022 report. During that period, sales totaled $226.31 million, representing an $84.37 million decline compared to the previous quarter.

In its most recent quarterly report, Ripple clarified that XRP sales are only possible in connection with its on-demand liquidity (ODL) transactions.


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