According to American-based financial news platform Bloomberg, Ripple is gearing up for one of its biggest moves. The blockchain company behind XRP plans to buy back up to $1 billion worth of its own tokens to create a new on-chain treasury, signaling strong confidence in its long-term vision.
Ripple intends to raise funds for the on-chain treasury, also known as DAT, through SPAC, a special purpose acquisition company. Further, as one of the largest XRP holders, Ripple will also contribute some of its stash to the treasury.
Meanwhile, the timing of the announcement sparked many heated discussions in the crypto space. Some are optimistic that a large buyback like this could shift market sentiment since XRP has been trading sideways due to escalations in the ongoing trade war between the US and China.
Analysts also believe it might help stabilize XRP’s price while conveying that Ripple is doubling down on its ecosystem and not stepping back. Interestingly, Ripple’s move also comes as global crypto adoption and regulatory clarity improve, especially in the U.S. and Europe. With banks and payment firms showing renewed interest in blockchain-based transactions, Ripple seems to be positioning itself and its digital asset XRP for the next big wave of adoption.
However, some hold a pessimistic view about the timing of the on-chain treasury, as more investors have become more wary of Digital Asset Treasuries due to a steep decline in the shares of major crypto hoarders like Michael Saylor’s Strategy Inc.
Nevertheless, if the buyback goes through, it would be one of Ripple’s largest yet, showing that the company isn’t just surviving the crypto market’s ups and downs; it’s getting ready to lead again. Meanwhile, according to data from asset tracker Coingecko, XRP currently trades below the $2.35 mark and continues to rank fifth in the crypto market.
