Excitement has been generated in the XRP community following a bold proposal advocating for a substantial XRP buyback by SBI Holdings. The proposal, introduced by GAM Investments, suggests that SBI should allocate part of its assets to establish an XRP reserve.
According to projections by AI tool ChatGPT, such a move could drive XRP prices into double digits, potentially reaching $15 in the most favorable scenario.
GAM Investments Highlights Untapped Ripple Opportunities
The proposal from GAM Investments raises concerns about the undervaluation of SBI’s Ripple-related assets. GAM, a stakeholder in SBI Holdings, criticized the company for not fully capitalizing on its Ripple and XRP investments to maximize shareholder value.
It was observed by GAM that SBI’s unclear crypto strategy and inadequate investor communication have hindered the full potential of its Ripple holdings. SBI’s 8–9% ownership stake in Ripple, combined with its indirect control over a significant portion of XRP, was noted to represent a largely untapped opportunity. GAM even suggested that this stake could exceed SBI’s current market capitalization.
To address these concerns, GAM proposed establishing an XRP reserve. It was argued by GAM that this approach could offer more substantial returns to shareholders than traditional methods like cash dividends.
ChatGPT Predicts XRP Price Scenarios
ChatGPT was used to evaluate the potential impact of an XRP reserve on the cryptocurrency’s price. The analysis considered scenarios where SBI allocates 5%, 10%, or 20% of its assets to XRP reserves.
SBI’s total assets, valued at ¥27.2 trillion ($175.1 billion) as of March 2024, served as the basis for the projections. With XRP’s circulating supply of approximately 57.45 billion tokens and an average price of $2.35 per token, various outcomes were modeled.
- A 5% allocation ($8.75 billion) would enable SBI to acquire about 3.72 billion XRP tokens, representing 6.5% of the circulating supply. ChatGPT predicted this could double XRP’s price to a range of $4.50–$5.00, depending on liquidity.
- A 10% allocation ($17.5 billion) could secure approximately 7.45 billion tokens or 13% of the circulating supply. This scenario was projected to push XRP prices to $7.00–$8.00.
- A 20% allocation ($35 billion) could result in the purchase of 14.89 billion tokens, roughly 26% of the circulating supply. ChatGPT suggested this could elevate XRP’s price to $10.00–$15.00, influenced by market conditions and liquidity factors.
Challenges to Implementation and Market Uncertainty
The proposal’s adoption by SBI remains uncertain and would depend on GAM’s ability to influence other stakeholders and convince SBI’s leadership. XRP community member WrathofKahneman noted that GAM’s stake in SBI could play a critical role in persuading other investors.
However, even if the strategy is implemented, the price predictions provided by ChatGPT are not guaranteed. Factors such as market conditions, liquidity constraints, and seller resistance could significantly affect the outcomes.
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While the prospect of a strategic XRP reserve has captured the attention of the XRP community, its potential impact on the market remains speculative.
