Ripple CTO ignores “XRP Buyback” theory as a Ponzi scheme
Valhil Capital CEO Jimmy Vallee shared his potential future prediction on the XRP token buyback theory at high cost by Govt agencies.
XRP is a native token on the XRP Ledger (XRPL). XRPL is a blockchain network, which runs on the Proof-of-stake (PoS) model. Ripple labs is the core team behind this project. Many people believe that XRPL is a centralized & back-end company that can control the transactions in the network but the Ripple team never admitted any such kind of allegations.
Recently Valhil Capital CEO Jimmy Vallee brought up the idea of the XRP token buyback theory.
He predicted that in the future the whole payment system will shift to the XRPL blockchain and in that situation, all the governments will use XRP tokens in the payment system. So in that situation, the governments will buy XRP from the Crypto trade marketplace and that may cost $50,000 per XRP token for them.
On 6 Feb 2023, Ripple CTO David Schwartz responded to this and said that we should learn lessons from the 2012 & 2022 incidents.
According to Ripple CTO XRP token buyback theory is more likely to be the Ponzi scheme, where people can see high returns with very low risk.
Reportedly, Ripple’s CTO indirectly targeted all the failed crypto lenders like Celsius, BlockFi & also crypto trade platform FTX, which went bankrupt in 2022.
Ripple vs SEC
Ripple is currently under a legal hurdle in the United States, since Dec 2020. Indeed, the United States Securities and Exchange Commission (SEC) initiated a lawsuit against the Ripple company.
Through the Lawsuit, the SEC agency claimed that the XRP token was an unregistered security and the company violated the services Act by selling more than $1.3 billion worth of unregistered securities publicly.
If Ripple will lose the XRP lawsuit then Ripple will quit the US market & further will increase its services in all the non-US countries.
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