Ripple’s Strategic XRP Buyback Triggers Community Debate
Recent discussions in the XRP community have centered around suspicions of price manipulation.
Notably, a respected figure within the community, @Leerzeit, has uncovered intriguing insights suggesting Ripple’s purchase of a substantial 700 million XRP tokens as an attempt to stabilize the XRP price.
Huber’s analysis showcased a stark observation: despite gaining ground post-legal rulings, XRP seems to have nullified these gains against the broader crypto market. This curious resistance to dipping below a certain ratio has raised eyebrows, hinting at potential resistance if the XRP tries to plummet further.
Expressing surprise, Huber highlighted XRP’s unexpected underperformance among cryptocurrencies, especially post-legal clarification. The coin’s lag, ranking among the five worst performers, was an unforeseen outcome post-regulatory clarity.
Diving deeper, Huber’s findings spotlighted Ripple’s unusual move of buying back XRP tokens recently, an infrequent occurrence in the company’s history. Speculations loomed regarding Ripple’s motives behind this action, hinting at a probable response to market instability caused by customers selling on open markets.
Clarifying Ripple’s strategy, Huber shed light on the company’s alternative liquid assets not part of the circulating supply, revealing Ripple’s holdings beyond the escrowed XRP. Questions lingered about the sustainability of this approach and its potential impact on the market, particularly when external buyers exceed Ripple’s own liquidity pool capacity.
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Huber’s revelations have triggered fresh debates within the XRP community. Ripple’s significant token repurchase is viewed as a strategic move to maintain market stability and ensure liquidity. However, concerns persist that customer transactions via On-Demand Liquidity might be contributing to XRP’s lackluster performance.
Key figures in the XRP community, including Edward Farina and WallStreetBulls, have raised concerns about XRP’s stagnant price despite noteworthy developments and partnerships. They argue that this divergence from other cryptos experiencing surges with less impactful news could imply possible price manipulation.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
