David Schwartz has responded to the XRP buyback proposal recommended by Jimmy Vallee, the Managing Director of Valhill Capital, in 2021.
According to a tweet posted by the Ripple Chief Technology Officer (CTO), the controversial proposal looks somewhat like a scam. This statement was made in response to n XRP community member who asked for his opinion on the proposal.
“I haven’t looked at it very closely. But what I have seen looks an awful lot like a scam to me. If we’ve learned anything from 2012 and 2022 it’s that anyone promising high returns with low risk is almost certainly going to rob you,” he shared in the tweet on Sunday.
It wasn’t clear which of the 2012 incidents Schwartz was referring to but it is suspected that he may be talking about the Bitcoin (BTC) Savings and Trust project introduced by Trendon Shavers with the moniker Pirate who was a resident of McKinney, Texas. The Bitcoin Saving and Trust project was regarded as a Ponzi scheme for using new investor’s funds to pay existing investors.
Initially, Shaver’s through the scheme promised investors up to 7% interest on their investment per week. In the end, he raised up to 764,000 BTC worth around $4.5 million at the time. However, he was unable to meet up with his outrageous promise to investors. Almost 50% of the investors were exposed to huge losses. Investigations later revealed that Shavers spent customers’ deposits on personal interests.
Vallee’s XRP Buyback Theory
This recent Vallee theory is formed on the basis that XRP will become the world’s reserve currency amid a surge in global national debt. Nevertheless, governments of these nations will be required to hold a massive holding of the token, hence, the need for the buyback. Vallee suggested a fixed buyback rate of $37,500 a pop for the XRP.
His figure was based on the global wealth and total XRP supply. Discussions about the controversial proposal resurfaced after Vallee’s recent interview with Molly Elmore popularly known as Clever Hummingbird. Attorney John E. Deaton has no plans of supporting the proposal even though it includes a plan to pay him for his efforts towards the XRP community.
The United States Attorney wants none of such payments not even for the LBRY case with the Securities and Exchange Commission (SEC).