Would you believe it if it were said that Ripple will soon become the world reserve currency and will be worth $50,000 in return? Ripple’s CTO, David Schwartz, spoke about the rumors and warned altcoin followers to be wary of certain scams.
The ‘XRP buyback’ theory
Ripple (XRP) is one of the most valuable cryptocurrency in the crypto market. Besides, Ripple claims to be the ‘reserve currency for the world’. However, this claim is based on a theory put forward by Jimmy Vallee. cryptocoin.com As you follow, Valhill Capital Managing Director Vallee put forward the theory of “XRP buyback” in 2021. In his theory, Vallee is asking the government to buy back the total supply of XRP at retail at $37,500 for a single XRP token. The price is obtained by dividing the total wealth in the global market by the total supply of XRP.
David Schwartz discredits the ‘XRP buyback’ theory
Now the theory is once again circulating on Twitter. This time, however, Ripple CTO David Schwartz is clearing the air about it. In a way, the Ripple CTO quickly shut down the rumors. He claims that although Ripple and XRP are a hot topic among his followers, he has not paid attention to the whole theory. It also reminds of the numerous crypto company liquidations that took place in 2022. He cites the losses suffered by so many investors and warns the market to beware of low-risk and high-yield offers. In this context, he makes the following statement:
I didn’t look very closely. But what I’ve seen seems too much of a hoax to me. If we’ve learned anything from 2012 and 2022, it’s that anyone who promises high returns with low risk will rob you.
Former developers also disagree with the theory for altcoin
In the past, Matt Hamilton, a former XRP developer, also views the rumors as false. In January, he opened a thread explaining that Valhill Capital’s theory disagreed. In this context, he highlighted the following:
There is a small but very loud minority of the XRP community who support the crazy idea that the US government buys back/seizes XRP from US citizens, but for some strange reason compensates 100% above market rate.
Among other things, he explained that XRP lives on a decentralized Blockchain. After all, they are impossible to access unless the government wants to forcibly confiscate the tokens from key holders. In addition, the government has a better option to create its own CBDC instead of buying XRP. In line with this, Matt noted:
If the US government wants ‘all XRP’ to prevent others from using it, this action kills any value or utility in it. The rest of the participants decide to ignore them or fork/create XRP 2.0.
