- The whale backlog recorded a sharp increase in January.
- XRP weighted sentiment has dropped to negative levels.
Pro-Ripple attorney John E. Deaton break up same from XRPs proposal to buy back and refuse to accept any money for its efforts over the two-year period Ripple vs SEC trial. He said ,
“Unless I come forward as a defense attorney representing a company that is being sued by the SEC, my efforts will continue to be pro bono. I will not accept money from any token holders related to my efforts.”
Deaton’s clarification came in response to the proposed terms of the buyback plan, which mentioned paying Deaton Law Firm for its contributions to the SEC process in connection with the XRP placement.
read waves [XRP] Price forecast 2023-24
What is the XRP buyback theory?
The proposal was put forward by Jimmy Valle of Valhill Capital in 2021 who backed XRP to become the world’s reserve currency. Valli stated that the global financial system will require a scalable digital asset in the future to address the problem of high government debt.
However, he added that for this to happen, governments would need to have a large amount of XRP that would have to be purchased from retailers.
Indeed in one of his most recent works interviewsVali pointed out XRP buybacks may be possible if the SEC verdicts in favor of Ripple.
However, not everyone was a fan of the speculation idea. Matt Hamilton, former head of developer relations at Ripple who has been a key critic of the buyback theory, Accused Jimmy Valle for bribery.
Galloping whales XRP
Despite the controversy surrounding XRP buybacks, whales big and small have found a liking for XRP. According to Santiment data, the number of addresses containing between 10,000 and 10 million XRP has increased sharply since the FTX crash.
This indicates that they have considered the network profitable for a longer period of time.
Moreover, large remittance transactions have also slowed which means that this group of investors is still not interested in profit-taking. This could help XRP move north.
Interestingly, Ripple Labs also increased its purchases of XRP over the previous quarter, as shown in Results report for the fourth quarter. A broader accumulation trend is observed for XRP.
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The 30-day MVRV ratio for XRP was still in positive territory highlighting the overall profitability of the network. This was a bullish sign.
On the flip side, the currency-weighted sentiment has been negative lately. The controversy surrounding the XRP buyback may affect investor confidence.
At the time of writing, XRP was trading at $0.4107, up slightly from the previous day, as well. for every CoinMarketCap.