- Ripple Labs faces skepticism about alleged plans to repurchase 10 billion XRP.
- XRP lawyers doubt Ripple’s ability to acquire $5B for the reported buyback.
- Ripple already holds 50 billion XRP in escrow, making the source repurchase illogical.
Recently, a website claimed that Ripple Labs, the blockchain firm associated with XRP, plans to repurchase a staggering 10 billion XRP tokens from its circulating supply.
However, prominent lawyers in the crypto community have expressed skepticism over the feasibility of such an endeavor, raising crucial questions regarding Ripple’s ability to acquire the necessary $5 billion to execute the reported buyback.
The skepticism was first voiced by prominent pro-XRP lawyer John Deaton, who tweeted: “I don’t believe Ripple is buying back 10B XRP until I hear it from Ripple.”
Deaton’s skepticism found support from another XRP lawyer, Bill Morgan, who delved deeper into the financial implications of such a buyback. Morgan questioned the source of the $5 billion required to repurchase the significant number of XRP tokens at their current market price.
Where are they obtaining the $5 Billion to buy it at its current price. Who would lend Ripple the funds, given the lawsuit, to buy back a token under a litigation cloud – unless there is another source of funding such as an IPO. https://t.co/N1iF0BDzhQ— bill morgan (@Belisarius2020) June 25, 2023
Morgan further questioned the plausibility of finding lenders willing to provide funds to Ripple amidst an ongoing lawsuit and regulatory uncertainties surrounding XRP. Morgan suggested that obtaining the necessary funds could prove challenging unless Ripple had an alternative funding source, such as an initial public offering (IPO).
Adding to the skepticism, a commentator pointed out that Ripple already holds a significant amount of XRP in escrow, estimated at around 50 billion tokens. He questioned the rationale behind a buyback, stating that it would appear illogical for Ripple to repurchase XRP when they already possess such a substantial supply.
Another crypto enthusiast pointed out the flaws in the article that sparked the speculation. The enthusiast revealed that the website hosting the article was created on the same day the article was published, raising suspicions about the legitimacy of the information.
The post Crypto Lawyer: Ripple Has No $5 Billion to Buy Back 10 Billion XRP appeared first on Coin Edition.