Ripple CTO Sounds Alarm On Controversial XRP Buyback Proposal, Labels It A „Scam“

Summary

• The XRP buyback theory was proposed by Jimmy Vallee of Valhill Capital in 2021.
• Matt Hamilton, a former Ripple director of developer relations accused Jimmy Vallee of bribery.
• Ripple’s CTO, David Schwartz has clarified his views about the proposal and labels it as a scam.

Background

The XRP buyback theory is a proposition proposed by Jimmy Vallee of Valhill Capital in 2021, who backed XRP to become the world’s reserve currency. Vallee stated that in the future, the global financial system would require a scalable digital asset to address the issue of massive national debts.However, he said that in order for this to happen, governments would need to possess a substantial number of XRPs, which would have to be purchased from retail holders. Vallee intimated that an XRP repurchase could be conceivable if the SEC action is resolved in Ripple’s favor. The speculative idea, however, did not impress everyone. Matt Hamilton, a former Ripple director of developer relations who has been a vocal opponent of the buyback idea, accused Jimmy Vallee of bribery.

Ripple CTO Speaks Out

Ripple’s CTO, David Schwartz has clarified his views about the proposal in his tweet. He mentions that he hasn’t looked at it very closely but it seems like a scam to him. He also reminds everyone about 2012 and 2022 and about what can be learned from it that if anyone is promising high returns with low risk is almost certainly going to rob you.

Clients who trusted Shaver’s to manage their money’s investments allegedly contributed 764,000 bitcoins to his Bitcoin Savings & Trust (BTCST) in 2012, which were worth about $4.5 million at the time. He claimed to use market arbitrage techniques and offered returns of 7% weekly or 3641% per year. However he used funds from new investors to repay previous investors and some funds were invested into MtGox which was then world’s largest bitcoin exchange at that time .He also allegedly spent money on extravagant personal products and expenses Investor losses were estimated at around $1 .23 million at that time .

Proposed Terms for Purchase

Certain details about the proposed terms for purchase of XRP tokens from participating token holders seem to have leaked recently.

Conclusion:
Is this what people who have promoted and interviewed Jimmy Valle are referring when they refer back buying out retail holders ? Only time will tell what will happen but one thing we know for sure is that Crypto space is full of scams ,so be aware before investing anywhere !