David Schwartz, the Chief Technology Officer (CTO) of Ripple, has denied rumors that the company is planning to buy back 10 billion XRP tokens.
The rumored buyback, equivalent to 10% of XRP’s total supply and valued at approximately $5 billion based on current prices, had garnered attention and discussion within the cryptocurrency community.
Schwartz took to Twitter to dispel the rumors, asserting that while Ripple does engage in XRP purchases, he has no knowledge of any specific buyback plans. He encouraged individuals to seek information from official sources before accepting such claims.
The rumors began circulating after a questionable news portal called CryptoAlert published an article claiming the buyback was a factual event.
Despite the absence of concrete evidence and an unreliable source, the rumor quickly gained traction among XRP enthusiasts and sparked numerous discussions.
While the alleged buyback remains unverified, it is worth noting that Ripple has been transparent about its regular XRP purchases.
The company’s financial reports have consistently disclosed open market transactions, which aim to ensure an adequate supply of XRP for their On-Demand Liquidity (ODL) service.
Ripple, however, emphasizes caution in these transactions by setting limits on the quantity and sources from which XRP is acquired, thereby minimizing potential market exposure.
According to XRPL Services, Ripple’s XRP holdings currently stand at approximately 41.9 billion tokens. These holdings serve various purposes within Ripple’s ecosystem, including supporting liquidity for cross-border transactions and facilitating partnerships with financial institutions worldwide.
