Community has been abuzz with rumors of impending buyback of 10 billion XRP tokens
Rumors are circulating within the cryptocurrency community about Ripple Labs, the San Francisco-based fintech company, possibly buying back a staggering 10 billion XRP tokens. CryptoAlert, a dubious news publication, appears to be the source of these rumors.
Prominent lawyer John E. Deaton, known for his favorable stance toward XRP, has joined the ranks of the skeptics who poured cold water on the news report.
Expressing his doubts via Twitter, Deaton declared that he will not believe the buyback news until it is officially confirmed by Ripple.
A buyback of XRP tokens by Ripple Labs would have significant implications for both the company and the broader XRP community.
Firstly, a buyback signals a vote of confidence in the currency’s value from the company itself. It indicates that Ripple Labs believes that XRP is currently undervalued and will increase in value in the future. This could bolster investor confidence, potentially leading to increased demand and upward pressure on the price.
Secondly, buybacks typically reduce the number of tokens in circulation. With fewer tokens available on the market, the value of each token could increase, assuming demand remains the same or grows. This is due to the basic economic principle of supply and demand: When supply decreases while demand stays the same or increases, the price typically goes up.
As reported by U.Today, Ripple reported a substantial surge in XRP sales in its quarterly report, with net sales reaching an impressive $361.06 million.