Ripple’s Controversial Share Buyback: A Deep Dive into XRP Community Reactions
Ripple’s Strategic Move: A Divided Community
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The announcement of Ripple’s recent $750 million share repurchase has sparked a significant divide within the XRP community. While some view this internal maneuver as a robust indication of the crypto payments company’s and XRP’s strength, others express concerns, suggesting that it highlights a recurring pattern where retail XRP holders are perpetually disadvantaged.
Ripple’s Buyback: Retail Investors Question XRP Commitment
In a recent discussion ignited by crypto analyst @WhaleFUD, the spotlight was turned onto Ripple’s internal dynamics, particularly its buy-and-sell operations and their impact on XRP. In a post shared on X, he detailed how Ripple allegedly sells XRP to generate funds for buying back shares of its own private equity.
According to @WhaleFUD, institutional investors and venture capital (VC) firms seem more inclined to acquire shares in Ripple, the crypto firm, rather than investing in XRP, the native token of the XRP Ledger (XRPL). This implies that any appreciation in Ripple’s corporate valuation may not directly translate into benefits for XRP holders. As @WhaleFUD remarked, “Retail is the liquidity,” while “Wall Street is the winner.”
The post provoked a strong response from various XRP community members, many of whom criticized Ripple for allegedly prioritizing equity holders over XRP holders. These community members argue that such a structure diminishes Ripple’s motivation to promote XRP’s long-term prosperity.
There are claims that Ripple’s leadership could be profiting from XRP transactions by utilizing escrow sales to finance buybacks, thereby inflating share prices ahead of a potential initial public offering (IPO). The launch of the RLUSD stablecoin was cited as a move that competes with XRPL’s applications, suggesting that retail investors might be getting marginalized.
Comparisons were made between Ripple’s internal operations and historical crypto trends, such as the 2017 initial coin offerings (ICOs) and 2021 layer-1 (L1) launches, where retail investors provided liquidity while early investors reaped the financial benefits. Another commentator suggested that Ripple, having aligned with VC backers, now prioritizes institutional profits over ensuring gains for XRP holders.
Ripple’s Buyback as a Signal of Confidence in XRP
Contrasting with the criticism, blockchain researcher BankXRP offered a positive perspective on the buyback news. He believes Ripple’s latest buyback initiative demonstrates the company’s strength and long-term confidence in XRP.
Reports indicate that Ripple has initiated a $750 million share buyback from investors and employees, boosting the company’s valuation to $50 billion. This marks a 25% increase from its $40 billion market value following a $500 million funding round in November 2025.
BankXRP views the tender offer as a testament to Ripple’s liquidity and enduring faith in the XRP ecosystem. Notably, the buyback is proceeding despite prevailing uncertainties in the crypto market and downward pressure on the XRP price. Ripple has also recently undertaken strategic acquisitions, such as the $1 billion GTreasury purchase and the $1.25 billion acquisition of Hidden Road, further bolstering its market position.
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