TLDR
- Ripple repurchased $750 million of its shares at a $50 billion valuation.
- David Schwartz rejected claims that the buyback harms XRP holders.
- Schwartz argued that lower XRP prices can reduce entry costs for buyers.
- Zach Rynes claimed XRP holders fund Ripple while shareholders gain equity benefits.
- An XRP community member said XRP does not grant ownership rights like company stock.
Ripple’s $750 million share repurchase at a $50 billion valuation has sparked fresh debate over XRP’s value. David Schwartz rejected claims that the move harms token holders. He argued that if Ripple’s XRP sales lower prices, they also reduce entry costs for buyers.
Ripple Responds to Criticism Over Share Buyback
Ripple confirmed that it repurchased $750 million of its shares at a $50 billion valuation. The move revived criticism from parts of the crypto community. Critics argue that XRP holders indirectly fund corporate actions without receiving equity benefits.
Zach Rynes, a Chainlink advocate, claimed XRP holders subsidize Ripple while shareholders gain direct returns. He stated that Ripple prioritizes equity holders over token holders. He added that holding XRP does not grant ownership in the company.
Rynes also argued that Ripple sells pre-mined XRP to raise capital. He said the company then uses that capital for acquisitions and stock buybacks. Therefore, he claimed shareholders capture the upside while token holders assume market risk.
In response, David Schwartz rejected the claim that XRP holders face unique harm. He stated that a constant and well-known market factor affects all participants equally. He argued that both buyers and sellers operate under the same conditions.
Schwartz said, “If the argument is that Ripple’s actions lower XRP’s price, then buyers also benefit.” He explained that lower prices allow new entrants to acquire more tokens. He maintained that this dynamic does not single out existing holders.
XRP Structure Compared to Ethereum and Solana
Schwartz emphasized that XRP is not an equity instrument. He stated that token ownership does not represent a claim on Ripple’s profits. Therefore, he argued critics misapply stock market standards to digital assets.
Are you being deliberately dumb? It's good for holders because it made the price of XRP go down when they bought it.
A constant factor that is known and understood does not affect holders because whatever effect it has on price, it has equally when they buy and when they sell.
— David 'JoelKatz' Schwartz (@JoelKatz) March 16, 2026
An XRP community member supported this view during the exchange. The commenter said holding Ethereum does not grant rights to Consensys revenue. He also said Solana holders do not receive distributions from Solana Labs.
The commenter added that XRP follows the same structure as other major tokens. He argued that token value depends on market demand and utility. He rejected the idea that corporate growth must translate into direct token payouts.
Rynes countered that XRP holders fund Ripple’s expansion without ownership rights. He described Schwartz’s defense as “elite tier gaslighting.” However, Schwartz reiterated that transparent and consistent market factors cannot uniquely disadvantage holders.
Schwartz maintained that both sides trade with full awareness of Ripple’s XRP sales. He said a known supply dynamic influences price discovery in open markets. He concluded that the effect balances across buyers and sellers under identical conditions.
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