Ripple CTO Warns XRP Community: This Buyback Proposal Screams Red Flags

David Schwartz, Ripple’s chief technology officer, just dropped a blunt take on the resurfacing XRP buyback proposal—and he’s not mincing words. “Looks like a scam to me,” he tweeted in response to community questions about the controversial plan.

For those out of the loop: Valhil Capital’s Jimmy Vallee introduced this theory back in 2021, arguing that XRP could become the world’s reserve currency if governments accumulated massive amounts of it at a fixed rate. His math? Between $37,500-$50,000 per XRP based on global wealth calculations—basically pricing it like gold under a hypothetical Bretton Woods 2.0 scenario.

But here’s where Schwartz pumps the brakes. He didn’t dive deep into the specifics, but what he has seen triggered alarm bells. His reasoning? “Anyone promising high returns with low risk is almost certainly going to rob you.” He pointed to historical cautionary tales—Bitcoin Savings and Trust (2012) imploded promising 7% weekly returns, and the crypto crashes of 2022 proved once again how easy it is to get rekt by unrealistic promises.

The proposal gained fresh traction after Vallee’s recent interview and leaked documents detailing terms allegedly drafted by Vallee and a “confidential committee.” Interestingly, prominent attorney John E. Deaton, whose name appeared in connection with the proposal regarding compensation, has publicly distanced himself—saying he won’t accept any payments for his XRP community efforts.

The vibe check: Community members are split. Some see potential in the concept; others echo Schwartz’s skepticism. The key takeaway? When someone’s selling you a financial moon shot with “guaranteed” returns, even if it sounds theoretically sound, history says to keep your hand on your wallet.