Ripple conducted an XRP token buyback in Q3 2020 for the first time. The buyback was estimated at $46 million. It was carried out despite the fact that the company owns almost half of the XRP offer total.
In an interview with The Block, a Ripple spokesperson revealed that the company is planning a further XRP buyback to support a recently launched loan product called Line of Credit, which allows ODL clients to buy XRP on credit from Ripple, a solution that uses XRP for money transfers. Overall, Ripple claimed that the buyout was in place to support a "healthy market." Perhaps this is how the company stimulates interest in XRP and seeks to influence the price of the cryptocurrency.
In the third quarter, Ripple sold XRP to ODL clients for $35.84 million. In the second quarter, the company sold XRP to institutional investors for $32.55 million. In the third quarter, there were no XRP sales on cryptocurrency exchanges.
Image courtesy of Crypto News Flash