Syed Imran Haider 
Ripple’s Chief Technology Officer, David Schwartz, responded to a Twitter XRP buyback suggestion. In what seems to be a direct response to the suggestion, Schwartz referred to the scheme as a “scam.”
This occurs as cryptocurrency investors put more pressure on Ripple Labs to give up control of the supply of XRP.
Alex Saunders, a well-known cryptocurrency expert, first suggested the idea of an XRP buyback scheme in January.
He suggested Ripple use some of its XRP token sales to fund a repurchase program and enhance investor liquidity.
Schwartz, however, categorically opposed this notion and asserted that there was no prospect of it succeeding. He added that Ripple and investors would suffer if such a plot worked.
Investor And Wall Street Analyst John Smith
John Smith, a notable investor, and Wall Street analyst, recently expressed his concerns about a fresh investment possibility on Twitter.
He warned that the product appeared to be a scam from what he had observed. Smith cautioned investors and cited the lessons learned from prior financial crises in his advice.
“Anyone promising great returns with no risk is almost always going to rob you,” he tweeted. Smith added that these schemes target inexperienced investors or those seeking rapid profits without knowing the hazards.
He advised investors to “do your study before investing in anything, no matter how nice it may seem.”
Valhill Capital Managing Director Jimmy Vallee proposed keeping substantial amounts of XRP as a reserve currency in 2021. He proposes that governments acquire XRP from retail holders to create a massive repurchase.
Given Bitcoin and Ethereum’s recent success, it’s ridiculous, but its rationale may be sound. Vallee notes that Ripple’s coin allows instant international transfers with cheaper fees than fiat currency financial institutions.
As a result, international payments would be made more quickly and efficiently at a significantly lower cost.
Vallee, an innovative cryptocurrency platform, has recently announced a fixed buyback rate of $37,500 per token.
People are debating the announcement’s consequences and authenticity in the crypto community, which has created quite a stir.
Vallee’s CEO Bases This Buyback Rate On Global Wealth
According to Vallee’s CEO, this new buyback rate is based on worldwide wealth and XRP’s entire supply.
He told Clever Hummingbird that this unique approach rewards long-term investors and boosts liquidity by increasing XRP token demand.
The ambitious initiative buys back up to 10% of tokens from investors who have held them for two years. Influential figures for XRP, such as Crypto Eri, have harshly denounced the phony proposal by French VC Vallee.
Vallee offered to purchase back XRP tokens for a 20% fee at a price significantly above their market value.
Members of the cryptocurrency world were outraged by this revelation because they perceived it as yet another scam.
In Ripple’s US Securities and Exchange Commission complaint, John E. Deaton was named as receiving remuneration for his help. He called Vallee’s XRP buyback offer “false advertising” and denied his involvement.
Mark Deaton, a notable cryptocurrency attorney, recently said he would not accept payment for his Ripple and LBRY cases.
The circumstances underlying these two occurrences particularly involve legal disputes with the Securities Exchange Commission (SEC).
Deaton has frequently expressed his views in public regarding the need for rules in the digital asset sector. In cases brought by the SEC, he defends clients such as Ripple and LBRY, amongst others.
Deaton will continue his pro bono work unless he appears as defense counsel for one of the SEC-sued corporations.
In October 2020, LBRY filed a motion to dismiss SEC charges against them while the Ripple case is still proceeding.
Given these changes, investors should be cautious and thoroughly assess all investment opportunities, including high-return, low-risk ones. The XRP buyback plan is the latest crypto fraud to catch investors’ attention.
The idea promised investors the chance to profit by repurchasing their XRP tokens at inflated prices. Sadly, this was nothing more than a ruse to rob unwary victims of their hard-earned money.
The shocking thing about this fraud is how many individuals fell for it despite warnings from professionals. It emphasizes how susceptible some investors might be when given deals that seem too good to be true.
