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XRP Buyback Not Possible, Says Ex-Ripple Executive

Wed, 01/04/2023 - 15:40
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Gamza Khanzadaev
Matt Hamilton on XRP buyback: 'it's fantasy'
XRP Buyback Not Possible, Says Ex-Ripple Executive
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A new wave of discussion about government buyback of XRP tokens emerged a few days after Valhil Capital's managing director, Jimmy Vallee, spoke in an interview, discussing what XRP might be worth now if not for the SEC's prosecution. He once again suggested that the cryptocurrency could be bought back if the regulator is defeated in court.

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Vallee has long promoted his buyback theory about XRP and has also speculated that the token will be worth $35,000 at some point. He believes that will happen when all banks switch to ISO20022 and use XRP.

Common sense

Many in the XRP community are rather pessimistic about such assumptions. Ripple's former director of developer relations, Matt Hamilton for example, considers Vallee's claims to be complete fantasy, a scenario that is logically impossible.

He noted, however, that even if a buyback of XRP were to occur, its price could not be considered fair value because the second is formed solely by market laws. Commenting on the possibility that the buyback would happen to make XRP the new government currency, Hamilton also questioned what prevents the government from simply buying the tokens from the market.

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As a general summary of Vallee's words, Hamilton said he was suspicious of his and Valhil Capital's activity, and that so far "he has been saying more clever words than doing anything."

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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.