David Schwartz, the Chief Technology Officer (CTO) of Ripple and a key figure in the development of XRP Ledger, has addressed recent rumors surrounding Ripple’s alleged plan to buy back a substantial amount of XRP tokens.
The rumors suggested that Ripple intended to repurchase 10 billion XRP tokens, equivalent to 10% of the total supply, with an estimated value of $5 billion.
In a tweet, Schwartz clarified the situation, stating that he was unaware of any specific buyback plans and emphasized the lack of official sources supporting these rumors.
The rumors started circulating when a dubious news portal called CryptoAlert published an article claiming the buyback plan as a fact.
Despite the lack of credibility of the source and the absence of confirmation, the news quickly gained traction within the XRP community, prompting discussions among prominent individuals.
While debunking the buyback rumors, Schwartz shed light on Ripple’s ongoing XRP purchases. It is a known fact that Ripple engages in open market transactions to ensure an adequate supply of XRP for their on-demand liquidity (ODL) service.
These transactions are clearly disclosed in Ripple’s financial reports. However, it is important to note that the company exercises caution by limiting the quantity and sources of XRP purchases, thereby minimizing potential market exposure.
According to XRPL Services, Ripple currently holds approximately 41.9 billion XRP tokens in its accounts. This information highlights the significant amount of XRP held by the company and its strategic approach to managing the token’s supply.
