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Ripple started buying back XRP from the open market – how about the future of XRP?

If you are a fan of Ripple and XRP, or simply an investor who has been holding XRP for a long time, you will be profoundly wondering why Ripple keeps buying back XRP from the open market. Moreover, recently Ripple revealed that it had continued the halt of programmatic sales while focusing on over-the-counter (OTC) sales in a bid to provide more XRP liquidity to the On-Demand Liquidity customers. So what does this mean?

Ripple is currently buying XRP from the open market

As AZCoin News reported, according to Q2 Markets Report, Ripple said it had purchased XRP on the secondary market (however, the amount was not disclosed); simultaneously sold about $ 32.55 million worth of XRP in the second quarter through OTC transactions. And this has sparked a new debate over the status of XRP.

To increase liquidity for XRP – On-Demand Liquidity – Ripple sold $ 32.55 million worth of XRP in the second quarter through over-the-counter (OTC) transactions.

The report stated:

“In Q2 2020, total XRP sales were $32.55 million (USD) vs. $1.75 million in the previous quarter. Ripple continued the pause of programmatic sales, focusing solely on its over-the-counter (OTC) sales as part of providing increased XRP liquidity to RippleNet’s On-Demand Liquidity (ODL) customers. This added liquidity is vital as ODL continues to evolve and expand into new corridors… 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.”

Also, Ripple is still not clear how much XRP they bought back, but it is highly likely that it will continue to buy XRP in the future at market price as it plays a key role in the liquidity process.

A Redditor named alone_sheep says Ripple’s acquisition of XRP is an extremely positive signal as it means Ripple is making enough money from their business that they can now afford to buy back up XRP thus lowering supply and increasing demand and therefore the price.

No one is talking about the fact that Ripple is now buying back XRP? from r/Ripple

Alone_sheep further postulated:

“They are still doing OTC sales, but given Ripple’s track record, these are all likely part of on-boarding contracts. Many of these companies will be holding onto the XRP they receive to utilize in future transaction flows.”

Other commentators have a similar view, with one arguing an acquisition could be the most positive thing a company can do:

“A stock buyback can often be seen as one of the most positive things a company can do with its capital to reinvest in themselves under the opinion that the market has undervalued the price. (Not that I’m suggesting XRP is a “stock”). Let that sink in for a moment…”

Others have suggested that Ripple buys XRP, meaning it sees the price of the cryptocurrency go up in the future.

However, not everyone is delighted by the idea of ​​Ripple being a buyer of XRP. Some of these have cited that it is market manipulation by Ripple.

For example, Ercrypto74 astutely pointed out:

“You do realize most CEOs and executive teams around the globe have used share buybacks as a way to artificially drive up the price of their company’s stocks allowing them to cash out at a higher price? Basically a legal way of insider trading. Now substitute in what I’ve just mentioned the word “shares” for “XRP” and hopefully, you’ll see why this is nothing more than Ripple execs and VC’s looking to unload their personal stash at a higher price at your expense. If you want to see for yourself have a look at the increase in circulating supply in just this week… Disgusting.”

It’s clear that crypto enthusiasts keep an eye on what Ripple’s recent decision means for XRP. We’ll have to wait and see how things work out with XRP.

The San Francisco-based startup fosters the creation of a global ecosystem through the Xpring initiative

Ripple continues to recruit employees again, showing it is expanding its global reach for XRP. Currently, the fintech unicorn behind the third-largest cryptocurrency is looking for a senior product manager that will be part of the developer services of Ripple subsidiary Xpring.

According to the recruiting post, the successful candidate will be the head of the company’s Xpring division to provide developers with the tools and services they need to incorporate blockchain payments into the app.

“We are seeking an experienced product manager to helm the cross-functional team responsible for building a robust, global developer ecosystem through Xpring developer platform. In this role, you’ll establish strong relationships with developers around the world in a scalable way by crafting amazing products to help developers build the Internet of Value (IOV). Our team works with the largest developer audience possible. We are engineers + storytellers, representing Xpring to communities all around the world, inspiring the creation of the future where money flows like data today.”

Ripple’s recent job listings also hint at an upcoming push to expand XRP adoption in Asia. Specifically, Ripple is looking for positions of account manager, integration engineer, marketing manager, and project manager at SBI Ripple Asia – a joint venture from Ripple and Tokyo-based financial company SBI Holdings.

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