Ripple’s XRP Buybacks: Secrets Revealed in Newly Released Emails, Igniting Speculation and Confidence in the XRP Army
Recently, a series of emails exposed a controversial insight into how Ripple has been handling the XRP market. This revelation has sparked community inquiry and raised questions about Ripple’s buyback program for XRP.
One of the emails, which surfaced during the Ripple vs Securities and Exchange Commission (SEC) lawsuit, revealed that Ripple was considering buybacks of XRP to boost the token’s price before the regulator filed a lawsuit against the company. The news was initially shared by Jimmy Vallee, the CEO of Valhil Capital, but Ripple executives quickly dismissed the rumor as absurd.
In response to a tweet from a crypto Twitter user named M31, Ripple’s Chief Technology Officer (CTO) David Schwartz admitted that Ripple buys XRP sometimes but could not confirm the truth of the rumor. He also mentioned that no official statement or source had been released regarding XRP buybacks.
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The controversial email showed that at the time, Breanne Madigan, the Vice President (VP) Head of Global Institutions Markets, shared a presentation highlighting the concerns about XRP’s On-Demand Liquidity (XRP-O) supply and its impact on the token’s price. The email discussed three possible narratives for XRP.
Firstly, it was observed that regardless of the source, XRP supply plays a crucial role in the market outlook. Secondly, the level of impact is likely dependent on the visibility of XRP supply, with higher visibility resulting in a greater impact on the market. Lastly, Ripple concluded that XRP supply through On-Demand Liquidity has the most significant impact on the market, possibly due to factors such as higher visibility, lower neutral liquidity, and wider spreads.
The presentation suggests that the last scenario could explain the underperformance of XRP compared to Bitcoin since its halving in May 2020. Ripple acknowledged that the XRP sales via XRP-O had a negative impact on the token’s price. As a result, Ripple considered implementing buybacks to mitigate this impact. The company designed five potential buyback options for XRP-O, including repurchasing XRP via market makers on multiple exchanges, repurchasing XRP directly from market makers, and diverting XRPO volumes to traditional On-Demand Liquidity.
Prior to this revelation, Ripple had expressed confidence in winning the SEC lawsuit, especially after the release of Hinman’s Speech. However, with the emergence of these emails, the XRP Army, as the XRP community is often referred to, is now uncertain about what to expect.
In conclusion, the recently released emails have shed light on the controversial topic of XRP buybacks by Ripple. While Ripple executives have dismissed the rumors, the email trail suggests that the company was indeed considering buybacks to improve the price of XRP. This revelation has sparked speculation and uncertainty within the XRP community, raising questions about the future of the token’s market performance. Only time will tell how this controversy will impact Ripple and XRP, but it has certainly ignited conversation and intrigue within the cryptocurrency community.
