Skepticism Arises as Lawyers Question Feasibility of Ripple’s Reported XRP Buyback

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  • A recent claim made by a website states that Ripple Labs, the blockchain company associated with XRP, has intentions to repurchase a massive 10 billion XRP tokens from its circulating supply.
  • However, well-known lawyers within the crypto community have expressed doubts about the feasibility of this undertaking.

A recent claim made by a website states that Ripple Labs, the blockchain company associated with XRP, has intentions to repurchase a massive 10 billion XRP tokens from its circulating supply.

However, well-known lawyers within the crypto community have expressed doubts about the feasibility of this undertaking. They have raised important concerns regarding Ripple’s ability to obtain the necessary $5 billion to carry out the reported buyback.

One of the skeptical voices is John Deaton, a prominent lawyer supporting XRP, who expressed his doubts on Twitter, stating, “I don’t believe Ripple is buying back 10B XRP until I hear it from Ripple.”

Deaton’s skepticism received support from another lawyer involved with XRP, Bill Morgan. Morgan went further by questioning the source of the $5 billion required to repurchase such a substantial amount of XRP tokens at their current market price.

Morgan further cast doubt on the feasibility of finding willing lenders to provide funds to Ripple, given the ongoing lawsuit and regulatory uncertainties surrounding XRP. He suggested that securing the necessary funds could be challenging unless Ripple had an alternative funding source, such as an initial public offering (IPO).

Adding to the skepticism, a commentator highlighted that Ripple already holds a significant amount of XRP in escrow, estimated to be around 50 billion tokens. This raised questions about the reasoning behind a buyback, as it would seem illogical for Ripple to repurchase XRP when they already possess such a substantial supply.

Another individual knowledgeable about cryptocurrencies pointed out the flaws in the article that sparked the speculation. They discovered that the website hosting the article was created on the same day the article was published, which raised suspicions about the reliability and authenticity of the information provided.

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