Ripple CTO David Schwartz: “This Looks Like A Scam!”

Ripplechief technology officer David Schwartzcontroversial XRP He offered his opinion on the buyback offer and said it looked like a scam.

Ripple CTO David Schwartz Says XRP Buyback Offer Looks Like A Scam

The Ripple manager announced this in a tweet he sent yesterday. He responded to an XRP community member asking for his thoughts on the controversial proposal.

According to the XRP Ledger architect, it looks like a scam on the surface. Referring to unspecified events in 2012 and 2022, Schwartz warned users to be wary of anyone who offers high returns for low risk.

While Schwartz doesn’t specify, it seems likely he’s referring to the 2012 collapse of Bitcoin Savings and Trust, run by Trendon Shavers, aka The Pirate.

The so-called investment platform collapsed within a year as Shavers failed to deliver on its promise of up to 7% weekly returns.

Investigations after the 2012 crash revealed that Shavers was spending investors’ money for personal gain.

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.

— David “JoelKatz” Schwartz (@JoelKatz) February 5, 2023

“I didn’t look too closely,” Schwartz wrote in a tweet yesterday. “However, what I saw looks like a lot of fraud. “If we’ve learned anything from 2012 and 2022, it’s that anyone who promises high returns with low risk will almost certainly rob you.”

In particular, Jimmy Vallee, managing director of Valhil Capital, put forward the XRP buyback theory in 2021. This theory is based on the belief that XRP will become the world’s reserve currency as the national debt increases rapidly globally.

But for this to happen, governments will need to own large amounts of XRP, according to Vallee. So the buyback will happen.

*Not investment advice.