In the cryptocurrency sector, there are rumours that Ripple Labs, a fintech startup with headquarters in San Francisco, may purchase back a stunning 10 billion XRP coins. These rumours seem to be coming from CryptoAlert, a questionable news source.
The well-known attorney John E. Deaton, who is well-known for his support of XRP, has joined the sceptics who have cast doubt on the news article.
Deaton tweeted his scepticism and that he wouldn’t accept the repurchase story until Ripple publicly verified it.
Ripple Labs’ purchase of XRP tokens would have a tremendous impact on both the business and the larger XRP community.
First off, a repurchase shows that the corporation itself believes in the worth of the currency. It shows that Ripple Labs thinks XRP is cheap right now and will appreciate in value in the future. This can improve investor confidence, which might then result in higher demand and pricing pressure.
Second, buybacks usually result in fewer tokens being in circulation. If demand stays the same or increases, fewer tokens on the market might result in a rise in the value of each token. Due to the fundamental economic law of supply and demand, when supply declines and demand either stays the same or rises, prices normally increase.
According to U.Today, Ripple’s quarterly report showed a significant increase in XRP sales, with net sales hitting an astonishing $361.06 million.
