Ripple, the company behind the XRP token, has purchased $8.4 billion worth of XRP tokens since the U.S. Securities and Exchange Commission (SEC) lawsuit began. The company did this to keep the price of the token intact.
The lawsuit has wreaked havoc
After the SEC’s indictment against Ripple Labs, the value of XRP has taken a massive drop. The SEC alleged that Ripple and its leaders had offered unregistered securities in the US, raising more than $1.2 billion. Ripple and the SEC have been embroiled in a heated legal battle for over two years. The ongoing lawsuit has had a major impact on the price of XRP, which is down 87.9% from its all-time high of $3.40.
Ripple is buying XRP tokens en masse
Despite the low price of XRP, Ripple has invested billions of dollars buying back XRP tokens from the secondary market. According to data provided by Blockworks have been shared, Ripple Labs has spent nearly 75% of its revenue from XRP sales buying back the tokens from secondary markets.
Blockworks noted that while Ripple has reported $11.1 billion in ODL-related XRP sales from early 2021 to late 2022, the company spent $8.4 billion buying back XRP tokens from secondary markets to meet the needs of its customers. ODL customers.
In the fourth quarter, Ripple’s XRP revenue was approximately $2.96 billion. The company bought back approximately $2.73 billion of XRP from secondary markets at the same time. Ripple itself says it would continue this buyback as long as the ODL service gained global acceptance.
Others think that Ripple Labs also buys so much XRP tokens on the secondary market to maintain the price of the token.