- Mr. Huber said Ripple’s share buyback was to help bypass U.S. regulations.
- The crypto sleuth said U.S. banks will be able to take up more ownership shares in the blockchain firm.
- Ripple disclosed it has no plans to IPO in the US and will continue buying back shares regularly.
In a recent tweet on social media platform X, renowned XRP advocate Mr. Huber explained why Ripple’s share buyback is a strategic move by the company.
Mr. Huber’s clarifications came in response to cryptocurrency YouTuber “Jungle Inc. Crypto” comments following the buyback announcements. While the YouTuber criticized the sale and called it a sign of distress, Mr. Huber explained it was to help Ripple bypass U.S. regulations.
The crypto sleuth stated that the share buyback will enable more banks to increase their ownership in Ripple. “How else can Ripple disguise all major investors while giving 50% of their ownership to the 20 banks that are now part of this?” Mr. Huber tweeted.
Yesterday, Reuters reported the blockchain firm was buying back $285 million worth of shares in the company from early investors and employees. As noted in that report, Ripple confirmed the sales and mentioned it would spend over $500 million in costs for the buyback. Investors are only allowed to sell up to 6% of their stake in the company.
Meanwhile, alongside the share buyback, Ripple also disclosed it has no plans to issue an Initial Public Offering (IPO) in the United States. The company based this decision on regulatory uncertainty in the country.
In the long term, Ripple said it plans to do more share buybacks on a regular basis to provide liquidity for investors. Brad Garlinghouse, Ripple Labs CEO, told Reuters the company has over $1 billion cash and over $25 billion worth of crypto, mainly XRP coins. The company’s massive XRP stash has recently stirred heated debates between crypto community members and Ripple executives.
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