Unconfirmed reports say Ripple considering buying back 10 billion XRP, skeptics doubtful
Rumors are circulating that Ripple, a San Francisco-based fintech company, may be considering a buyback of 10 billion XRP. However, these rumors have been called into question by skeptics such as lawyer John E. Deaton. In their social media comments, they urge the community to wait for an official confirmation from Ripple.
Crypto lawyer awaiting Ripple’s clarification on rumors
Deaton expressed his doubts via Twitter, saying he would not believe the buyback news until he received official validation from Ripple.
The potential buyback has substantial implications for the company and the broader XRP community.
Firstly, it would signal Ripple’s confidence in XRP, suggesting that the company perceives the coin as currently undervalued and expects its future value to rise. This confidence could boost investor sentiment, potentially driving up demand and exerting upward pressure on XRP prices.
Secondly, buybacks typically result in a reduction of tokens in circulation. With a decrease in available XRP in the market, prices could rise, assuming demand remains stable or grows. This outcome aligns with the fundamental economic principle of supply and demand, wherein a decrease in supply and constant or growing demand generally lead to a price surge.
Ripple will slow down XRP sales
Ripple recently disclosed that its XRP sales rose to $361.06 million.
However, the blockchain company has been progressively reducing XRP sales, as outlined in its Q4 2022 report. In all, sales totaled $226.31 million during this time, a $84.37 million drop compared to the previous quarter.
In its latest quarterly report, the company clarified that XRP sales are only possible when connected to its on-demand liquidity (ODL) transactions.