XRP Soars to $2.23 Lifeline as Ripple Launches Massive $1 Billion Token Buyback
Ripple throws XRP a billion-dollar lifeline just as the token tests critical support
The Billion-Dollar Bet
Ripple's putting its money where its mouth is—deploying a staggering $1 billion to buy back XRP tokens directly from the market. The move comes precisely as XRP finds itself clinging to the $2.23 level, a make-or-break support zone that's separated previous rallies from catastrophic collapses.
Market Mechanics Unleashed
This isn't just another corporate buyback program. We're watching a crypto-native intervention play out in real time—Ripple deploying serious capital to defend its flagship asset's price floor. The $1 billion injection represents one of the largest token repurchases in crypto history, signaling the company's conviction that current prices dramatically undervalue XRP's long-term potential.
Price Action Under the Microscope
Traders are watching the $2.23 level like hawks. Previous tests of this zone have triggered everything from 50% rallies to breakdowns that vaporized portfolios. Now, with Ripple's billion-dollar backstop officially in play, the calculus changes completely. The company's essentially drawing a line in the sand and daring bears to cross it.
Because nothing says 'we believe in our technology' like spending a billion dollars to prop up the price—Wall Street would be proud of such transparent market manipulation, but in crypto, we call it 'tokenomics.'
Digital Asset Treasuries, or DATs, have become one of the hottest topics in crypto lately, offering huge potential gains.
But with the HYPE comes growing risk, as questions around transparency and fund safety have started to emerge. Binance founder CZ has now stepped in, calling for stronger safeguards and accountability across the DAT ecosystem.
All DAT companies should use 3rd party crypto custodians with account setup audited by investors.
This is a prerequisite for any @yzilabs investments in any #BNB DATs. https://t.co/POsFWZqoJG
CZ Pushes for Custodians and Investor Audits
The warning comes after reports that the DAT company, QMMM, may have disappeared with investors’ funds. CZ said all DAT firms should use trusted third-party crypto custodians and have their accounts audited by investors.
He also shared that this will now be a mandatory step for any BNB DAT project looking to secure investment from YZi Labs, signaling a positive shift towards more transparency in the industry.
QMMM Disappears Amid Allegations of Stock Manipulation
The trouble started when QMMM, one of the first “micro-strategy” DAT companies, suddenly disappeared. The U.S.-listed firm had announced plans to invest $100 million in BTC, ETH, and SOL, and its stock price shot up to 9.6 times after the news.
But soon after, the SEC accused it of using social media to manipulate its stock. Reports from Caixin now say QMMM’s Hong Kong office is completely empty, sparking suspicions that the company may have shut down and taken off with investor’s money.
第一家跑路的微策略公司出现了。
曾计划拟斥 1 亿美元，建立 BTC、ETH、SOL 储备的美股上市公司 QMMM，在官宣后股价曾一度上涨 9.6 倍，后被 SEC 指控利用社交媒体操纵股价。
根据财新消息，QMMM 所在的香港海景大厦办公室，已经彻底人去楼空，疑似关闭和跑路。 pic.twitter.com/F0JRHKqVIS
This case serves as a big wake-up call for the crypto space. Regulators like the SEC and FINRA are now investigating 200+ crypto-holding companies for suspicious stock activity and potential insider trading.
Companies launching DATs have seen unusual price movements before public announcements, increasing both regulatory and market concerns.
Signs of a DAT Bubble
BitMine chairman Tom Lee believes that the digital asset treasury (DAT) sector may already be experiencing a bubble burst. He pointed out that many DATs are trading below their net asset value, the value of their underlying cryptocurrency holdings, indicating early signs of a market correction.
For example, Metaplanet’s market-to-net asset value (mNAV) recently fell below 1 for the first time, meaning its market capitalization dropped below the value of its Bitcoin holdings.
Bitcoin Buys Slows, Stocks Slump
Bloomberg reports that DATs have accumulated around $140 billion in bitcoin and helped push prices to record highs. However, purchases have slowed since early summer, coinciding with falling stock prices.
Strategy and Metaplanet have experienced decline in stock prices reflecting broader market trends and investor sentiment. Strategy is down 12% in the past day, while Metaplanet stock is down 6%.
Experts like Cardano’s Charles Hoskinson say DATs must evolve from speculative trades into long-term investment vehicles focused on blockchain development.
Amid the growing risks in this space, CZ’s call for third-party custodians and investor-audited accounts offers a clear path ahead. Greater transparency and accountability can help DATs protect investors and rebuild trust in the market.
