David Schwartz, the chief technology officer (CTO) of Ripple and one of the key developers of the XRP Ledger, has responded to the most recent rumors regarding the company’s alleged plan to buy back 10 billion XRP tokens, which is equal to 10% of the total supply and, at the time of writing, is worth $5 billion.
Schwartz explained the situation in a recent tweet, saying that while Ripple does participate in XRP purchases, he was not aware of any specific buyback plans at the moment. He also emphasized that these rumors were not supported by any official sources.
The rumors first surfaced a day earlier, when the dubious news website CryptoAlert published a story immediately confirming it as fact. Despite the dubious source and unsubstantiated information, the rumor quickly caught on among the XRP community, with several distinguished voices commenting on it.
XRP from Ripple
There is no mystery about Ripple’s acquisition of XRP. The company’s financial analyses have consistently shown open market transactions designed to ensure a sufficient supply of XRP for their on-demand liquidity (ODL) service. Furthermore, Ripple emphasizes that it exercises caution by restricting the quantities and sources from which XRP is purchased, so reducing potential market exposure.
Ripple currently has 41.9 billion XRP tokens in its accounts to respond to XRPL Providers. These tokens support the company’s various financial services significantly and strengthen its strong presence within the XRP ecosystem.