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XRP Buyback Frontman Offers to Create Bank, Ex-Ripple Official Alerts Scam

Sun, 03/26/2023 - 13:10
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Gamza Khanzadaev
Matt Hamilton alerts possible scam after author of XRP buyback proposal comes up with bank idea
XRP Buyback Frontman Offers to Create Bank, Ex-Ripple Official Alerts Scam
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Former Director of Developer Relations at Ripple Matt Hamilton commented on the XRP bank concept voiced by Jimmy Vallee, author of the XRP buyback proposal. The background is that Vallee proposed creating a bank where investors would deposit their XRP and then buy gold against them. As he envisioned it, if all XRP holders agreed that the price of one token was $10,000 and all of them were deposited in the bank, the organization would become one of the wealthiest.

Ripple CTO Claims XRP Buyback Program Is a Scam

In addition to being hilarious, the idea also looks like a scam, the former director at Ripple said. The price of XRP is determined by the market, not because someone decided to cook the books and approve it at $10,000, Hamilton argues. A prominent member of the XRP community under the nickname Crypto Eri held a similar opinion, stating that this was not a game she wanted to play with her assets.

Buyback of XRP? Unlikely

Hamilton has previously challenged Vallee's claims, stating that neither a buyback of XRP nor linking the token to gold directly is possible. The current CTO at Ripple, David Schwartz, who is one of the architects of XRP Ledger, holds a similar view. Schwartz has explicitly called such offers a scam, saying that if someone promises high returns at low risk, they are probably going to rip you off.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.