This is a pretty freaking wild thing and I would love how to know how it is legal. Ripple is essentially getting outside investors to invest in a SPAC to buy only their token (and at least $1 billion in) XRP under a digital asset treasury structure.
If completed, the move would represent one of the largest single fundraises associated with XRP, one of the world’s largest tokens, which has a market capitalization of approximately $138 billion as of Friday.
When reading further into why they are doing this I have even more questions than answers...
Ripple’s initiative would mark a rare institutional-scale attempt to consolidate XRP exposure. The firm already holds about 4.7 billion XRP directly, worth roughly $11 billion, while another 35.9 billion tokens sit in monthly on-ledger escrows that unlock over time.The bet is that controlled accumulation and treasury management can bring stability — or at least predictability — to XRP’s supply dynamics as the token plays a growing role in institutional payments and custody.
This just screams that they are trying to pump their cryptos price and I am not sure how it can be seen any other way....
Qshares of a company, the valuation on their books isP \times QwherePis the last-traded price. So if you pumpP, you boost your entire financial position, but it's an illusion because you could never liquidate your entire position at priceP.