Recently, a website stated that Ripple Labs, the XRP-related blockchain company, intended to repurchase an astounding 10 billion XRP tokens from its circulating supply.
However, top crypto lawyers have raised doubt about the viability of such a project, raising crucial concerns about Ripple’s capacity to collect the $5 billion needed to carry out the claimed buyback.
Outstanding pro-XRP attorney John Deaton was the first to express doubt in a tweet, writing: “I don’t imagine Ripple is shopping for again 10B XRP until I hear it from Ripple.”
Another XRP attorney, Invoice Morgan, helped Deaton’s skepticism by delving more deeply into the financial ramifications of such a buyout. The availability of the $5 billion needed to repurchase the various types of XRP tokens at their current market value was questioned by Morgan.
Morgan further questioned the likelihood of finding lenders eager to provide money to Ripple in the face of a continuing legal battle and regulatory uncertainty surrounding XRP. Morgan advised that unless Ripple had a different funding source, such to an initial public offering (IPO), getting the needed cash might prove challenging.
A commenter mentioned that Ripple already has a significant amount of XRP in escrow, estimated at around 50 billion tokens, adding to the scepticism. He questioned the justification for a buyback, saying it would seem absurd for Ripple to buy back XRP when they already have such a big supply.
Another crypto enthusiast recognized the problems with the essay that gave rise to the theory. The enthusiast raised doubts about the veracity of the information by revealing that the website housing the article was founded on the same day the item was published.
