Cryptocurrency

XRP buyback impossible: Ex-Ripple Executive

  • Rumors were spreading that the government might buy back XRP tokens from users. 
  • Jimmy was, as usual, very optimistic, saying XRP may touch $35,000.
  • Both parties have submitted their final arguments, and the community awaits the verdict. 

After Valhil Capital’s managing director, Jimmy Vallee, spoke in an interview, where he discussed what XRP’s value would have been had the case Securities and Exchange Commission had not started. A new clutter of discussions about the government buyback of XRP tokens came to light a few days after. 

Jimmy has once again hinted that the cryptocurrency could still survive and thrive if the SEC is defeated in court. 

Jimmy has been promoting his XRP buyback theory for a long time, speculating that someday the token would touch $35,000. This belief was based on one important factor; when all the banks switched to ISO20022 and used XRP. 

But many in the XRP community do not share his enthusiasm, saying that it’s a very long shot, like a bet with critically low chances of success. 

Matt Hamilton, former director of developer relations at Ripple, considers Vallee’s claims a complete fantasy and a logically impossible scenario. 

Even if the XRP buyback were to occur, the price would not be fair value, as it is formed solely by market laws. If a buyback were to take place to make XRP the new government currency, Hamilton argues what is preventing the government from buying the tokens from the market. 

The Ripple vs. The SEC case entered its third year, starting from December 2020, when the crypto exchange was accused of selling unregistered securities XRP and raising $1.3 billion. The community awaits a ruling as both parties have submitted their final arguments. 

Before the verdict came, a pro-XRP attorney, John Deaton, conducted a survey on Twitter asking the community about possible outcomes. 

December 28, 2022, a poll saw 59.2% feel positive about a settlement, and 40.8% choose the option for the verdict. However, John sided with the lesser-selected group, citing three main reasons.

First, Deaton initially saw SEC resisting the release of Hinman’s email, which could hint at settlement, and that the presiding Judge had rejected the SEC’s order of a document where ETH was referred to as security. 

The second scenario is that there is a 30% chance that Ripple might lose this case after fighting such a long battle.

Third would be that the case could end in a stalemate, and there is a 19.1% possibility that the judge may not rule in favor of either party. 

Another wild possibility could be that the judge might deliver a totally unexpected verdict, which is atypical in litigations.  

Nancy J. Allen
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