Ripple Bought $8.4B XRP To Support Healthy Markets• February 11, 2023 10:16 pm • Comments
Ever since the start of the lawsuit between the SEC and Ripple, the data shows that Ripple has continued to buy billions of XRP in order to support the market.
This indicates that the company still has a tremendous amount of confidence in the success of its digital token and the XRP ledger despite the ongoing lawsuit.
Recent reports have indicated that the fourth quarter of 2022, the company had spend around $2.74 billion on XRP despite the declining price due to the bear market.
This makes a total of around $8.4 billion in XRP that was bought since the start of the lawsuit and signs show that this trend will likely continue.
After all, this will likely help increase the liquidity of its On-Demand Liquidity solution which has experienced high demand from financial institutions.
#Ripple Bought $8.4 Billion #XRP Since SEC Lawsuit To Support Healthy Marketshttps://t.co/xRf5XT51M7
— XRPcryptowolf (@XRPcryptowolf) February 4, 2023
“As more financial institutions leverage RippleNet’s ODL service, more liquidity is added into the XRP market. That said, Ripple has been a buyer in the secondary market and may continue to undertake purchases in the future at market prices.”
To start, Ripple Labs was snapping up around $40 million per quarter, in Q3 and Q4 2020. It then took a break until Q4 2021, when it ramped up efforts significantly by spending $322 million.
Around $1.08 billion was spent in the first three months of 2022, then $1.71 billion in the following quarter. That expenditure jumped almost 50% in the quarter after that, when Ripple reported $2.5 billion in secondary purchases.
Last quarter, it spent $2.74 billion on XRP. The price of XRP, meanwhile, dropped by 30%.
Ripple described its buying campaign as a “near-term product solution” for an XRP lending operation announced in Oct. 2020.
One of the most important things to note is that Ripple is having success in more than one product which will enable it to continue to grow steadily despite the SEC lawsuit.
For example, besides its famous ODL solution, Ripple has also recently been gaining a lot of traction by entering partnerships with government entities for the creation of CBDCs.
It is unclear at the moment what Ripple’s specific role will be in these partnerships, but it is clear that Ripple is the favorite given that no other blockchain company has been consulted with for such important matters as much as Ripple.
Ripple also revealed that it owned less than 50% of the supply of XRP for the first time and that this will continue as its ODL solution continues to expand.
This further proves that the project is truly decentralized unlike many other crypto projects which have not been targeted by the SEC yet.
#Ripple has repurchased $8.4 billion worth of #XRP #Tokens since the #SEC lawsuit to support its market. pic.twitter.com/36qTZFZ3SY
— The Trading Engineer (@TheTradingEngin) February 7, 2023
Whether XRP is a security has yet to be determined. A ruling is expected sometime this year.
On Dec. 22, the day SEC filed charges against Ripple, co-founder Chris Larsen and CEO Brad Garlinghouse, the latter stated in a blog: “Unlike securities, the market value of XRP has not been correlated with Ripple’s activities. Instead, the price of XRP is correlated to the movement of other virtual currencies.”
Crypto prices across the board indeed tend to correlate. But based on Ripple’s own disclosures, it’s clear the firm has been busy directly maintaining the “health” of XRP markets throughout its battle with the SEC — to the tune of billions — all while attempting to disprove its influence over XRP.
Ripple Bought $8.4 Billion XRP Since SEC Lawsuit To Sustain Token Price: Report #Ripple #XRP #XRPLCommunity #XRPArmy #XRPHolders #XRPCommunity #xrpsec #Crypto #cryptocurrency #CryptoNews $XRP #cryptocurrencieshttps://t.co/njKoqkJTTe
— TimesTabloid (@TimesTabloid1) February 5, 2023
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