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- Ripple is rumored to soon become the world reserve currency in the future, and in turn become valued at $50,000.
- Ripple’s CTO David Schwartz has spoken about the rumors and warned Ripple followers to be wary of certain ploys.
Ripple’s XRP token is one of the most valued cryptocurrency in the crypto market. To its title, Ripple XRP can add “the reserve currency for the world.” This is according to a theory that has been put up by Jimmy Vallee. Vallee, the Managing Director of Valhill Capital came up with the “XRP buyback” theory in 2021.
In the Vallee Buyback Theory, the government is being asked to buy back XRP’s total supply from retail at a whopping $37,500 for a single XRP token. The price is derived from the division of the overall wealth in the global market, by the total supply of XRP.
The theory is once again being pedaled within the crypto twitter-sphere. This time around, the CTO of Ripple David Schwartz is clearing the air about what it could be.
The CTO of Ripple quickly shut down the rumors. He claims he hasn’t paid attention to the entire theory, despite it being a major topic among Ripple and XRP followers. He warns of the many dissolutions of companies that took place in 2022. He references the losses that so many investors incurred and warned the market to be aware of low-risk and high-return offers.
I haven’t looked at it very closely. But what I have seen looks an awful lot like a scam to me.
He wrote in a tweet.
If we’ve learned anything from 2012 and 2022 it’s that anyone promising high returns with low risk is almost certainly going to rob you.
Other market analysts are debunking the XRP buyback theory
In the past, a former XRP developer Matt Hamilton has also debunked the rumors as false. In January he made a thread explaining that Valhill Capital’s theory is not one he agrees with.
There is a small, but very vocal minority of the XRP Community that is promoting a crazy idea of the US government buying back / confiscating XRP from US citizens, yet for some strange reason compensating them 100’s of 1000’s of % above market rate.
Among other things, he explained that XRP lives on a decentralized blockchain. Unless the government wants to seize the tokens from key holders by use of force, it is impossible to access them. In addition, he asserts that instead of buying XRP, the government has a better option of creating its own CBDC. Matt said.
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If the US government wants “all the XRP” to prevent others from using it, that very act kills any value or utility in it. The rest of the participants just decide to ignore them or fork/create XRP 2.0.
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