Cryptocurrency

Ripple buying back XRP As bullish message for the XRP exchange rate is?

The announcement of Ripple that the company has bought XRP on the secondary market, triggered a new debate on the status of the third-largest cryptocurrency by market capitalization.

In his market report of 2. Quarter of the Startup that it bought through its subsidiary, XRP II, an undisclosed amount of XRP. Ripple indicates that it has sold in the second quarter of XRP in the value of 32,55 millions of dollars by over-the-counter (OTC)transactions, in order to increase the liquidity for its XRP-transfer platform, known as ODL.

Ripple back to buy XRP on the market

The message of the Ripples a new Status as the XRP buyer took a shot at the title page of the Ripple page at Reddit, where a Post indicating that the purchases of XRP could be a positive Signal for the Asset.

The fact that Ripple has stopped, the programmatic sale of XRP on the open market and from open market purchases, is a great IMO. This means that Ripple earned enough money with his business, so it can afford the buyback of XRP, so that the supply decreases and the demand and therefore the price rises.

They sell to the OTC, but given the track record of Ripple these are probably all part of the On-Board contracts. Many of these companies are holding on to the received XRP in order to use them in a future TRANS-action flows.

Others agreed with this opinion, and some threw the idea in the room, that Ripple bought the XRP in anticipation of a rising rate, in order to make additional Profit with your own crypto-currency.

A share buy-back can often be one of the most positive things that you can do a company is using its capital to themselves to reinvest, if it is of the opinion that the market has evaluated the price below.
(Not that I’m suggesting, XRP is a “share”)
Let the sink in for a Moment…

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But not so bullish?

But not all Crypto Fans are excited about Ripples steps. Some of the purchase of XRP by the company with share repurchases equal to the practice that companies buy their own shares.

You do realize that most of the CEOs and Executive teams have used around the globe share repurchases as a way to drive up the price of the shares of your company at an artificially high level so that you can pay off at a higher price? Basically a legal type of insider trading.

Replace in what I have just mentioned, the word ‘shares’ by ‘XRP’, and you will hopefully understand why this is nothing more than Ripple-executives and VCs who want to divest their personal stock at a higher price on your costs.

Ripple says that it may buy in the future XRP at market prices, since it seems to play a responsible role in promotion of liquidity on the XRP transfer market.

(Image Source: Shutterstock)

The comments in this article do not represent any trading recommendations or investment advice.

About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.

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