David Schwartz, Ripple's CTO, has responded to a recent proposal for an XRP buyback program, calling it a "scam."
"I haven't looked at it very closely. But what I have seen looks an awful lot like a scam to me. 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," he tweeted.
The insane proposal was put forward by Jimmy Vallee, the Managing Director of Valhill Capital, in 2021.
Vallee argues that XRP has the potential to become the reserve currency of the world and suggests governments should hold large quantities of XRP, leading to a buyback from retail.
Vallee offers a fixed buyback rate for the XRP token of $37,500 a pop based on the global wealth and XRP's total supply.
The ludicrous XRP buyback theory recently became a hot topic within the community once again following Vallee's interview with Clever Hummingbird.XRP influencers such as Crypto Eri strongly criticized the too-good-to-be-true sham deal.
Moreover, attorney John E. Deaton, who was mentioned in the proposed terms as allegedly receiving payment for his role in the US Securities and Exchange Commission's case against Ripple, has made it clear that he has no involvement with Vallee's XRP buyback proposal.
Deaton has stressed he will not accept money for his efforts in the Ripple and LBRY cases and has stated that his efforts will continue to be pro bono unless he files an appearance as a defense counsel representing a company being sued by the SEC.
In light of these developments, it is important for investors to be cautious and critically evaluate all investment opportunities, especially those that promise high returns with low risk. The XRP buyback proposal is the latest example of a blatant crypto scam.