- Ripple has always had a complete understanding about the release of XRP tokens from escrow to assist in managing cryptocurrency supply.
- The buyback strategy is particularly specific to stocks, as it involves the company purchasing its own assets from the market to create scarcity.
- The buyback of XRP could strengthen the status of Ripple’s digital currency as an investment contract in relation to the ongoing SEC case.
The CTO of Ripple, who is continuing the legal battle with the SEC in the US, revealed in a Twitter discussion that they sometimes buy XRP.
Ripple CTO Joins a Conversation About XRP
The role of Ripple Labs Inc., an American blockchain payment company, in the circulating supply of XRP is still being debated within the ongoing legal battle between the company and the United States Securities and Exchange Commission (SEC).
Ripple has always had a complete understanding about the release of XRP tokens from escrow to assist in managing cryptocurrency supply. These buybacks are important to help with liquidity management, but there is uncertain understanding about the role the company plays in the buyback of XRP.
The buyback strategy is particularly specific to stocks, as it involves the company purchasing its own assets from the market to create scarcity. No official statement has ever been made on this matter, and when the topic resurfaced in the community, the company’s CTO, David Schwartz, joined the conversation.
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
David Schwartz stated that the company buys XRP, but he is not sure if it refers to the same context presented in the current discussion. With widespread speculation, no official source has been mentioned to support the buyback claims.
The buyback of XRP could strengthen the status of Ripple’s digital currency as an investment contract in relation to the ongoing SEC case. As the buyback is a strategic effort to increase the value of an asset, the case has never been a major concern for over two years.
Ripple Rejects XRP at the Liquidity Hub
The ongoing lawsuit, which is said to determine the fate of XRP in the US, has forced Ripple Labs to abandon the cryptocurrency as an asset at the Liquidity Hub.
XRP holds a significant position in Ripple’s RippleNet and XRP Ledger protocols, but its usage has been limited until the lawsuit is resolved. With Ripple rejecting the coin, other partners have also largely rejected the digital currency, leaving the market’s decision to determine its price increase.
