The XRP community is abuzz with excitement following a proposal urging SBI Holdings to undertake a significant XRP buyback initiative. This proposal, put forth by GAM Investments, suggests allocating a portion of SBI’s assets to establish XRP reserves.
According to a forecast by the AI chatbot ChatGPT, such a move could push XRP’s price into double digits, reaching as high as $15 in the most optimistic scenario.
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GAM Investments’ Proposal
Recently, GAM Investments, a stakeholder in SBI Holdings, highlighted concerns about the undervaluation of SBI’s Ripple-related assets. As reported by Times Tabloid, GAM pointed out that SBI has not effectively utilized its investments in Ripple or XRP to maximize shareholder value.
GAM attributed this to SBI’s unclear cryptocurrency strategy and inadequate communication with investors. According to GAM, SBI’s 8–9% stake in Ripple and its indirect control over a significant portion of XRP through Ripple represent an underexplored opportunity. GAM noted that this stake alone could surpass SBI’s current market capitalization.
To unlock this potential, GAM proposed that SBI establish an XRP reserve fund. They argued that this approach could deliver better shareholder value than conventional methods like cash dividends.
ChatGPT’s XRP Price Predictions
To assess the potential impact of such a reserve on XRP’s price, ChatGPT analyzed various scenarios. The chatbot evaluated outcomes if SBI allocated 5%, 10%, or 20% of its assets to an XRP reserve.
As of March 2024, SBI’s total assets are valued at approximately ¥27.2 trillion ($175.1 billion). Based on XRP’s circulating supply of about 57.45 billion tokens and an average price of $2.35 per token, ChatGPT calculated the potential market impacts of these allocation percentages:
- 5% Allocation:
Allocating 5% of assets (~$8.75 billion) would enable SBI to purchase approximately 3.72 billion tokens, about 6.5% of the circulating supply. ChatGPT predicts such a large-scale buy could double XRP’s price to the $4.50–$5.00 range, depending on market liquidity. - 10% Allocation:
A 10% allocation (~$17.5 billion) would allow SBI to acquire around 7.45 billion tokens, equivalent to 13% of the circulating supply. ChatGPT suggests this could push XRP’s price to $7.00–$8.00. - 20% Allocation:
In the most optimistic scenario, a 20% allocation (~$35 billion) would bring approximately 14.89 billion tokens into the market, accounting for 26% of the circulating supply. ChatGPT forecasts such a dramatic reduction in available XRP could drive its price to $10.00–$15.00, subject to market conditions and liquidity constraints.
Implementation Prospects
While GAM’s proposal is compelling, whether SBI will act on it remains uncertain. The final decision depends on factors such as GAM’s influence over other stakeholders and its ability to convince SBI’s leadership to adopt this strategy.
XRP community member WrathofKahneman emphasized the significance of GAM’s stake in SBI and its potential to sway other investors. However, even if SBI decides to implement the plan, there is no guarantee that ChatGPT’s price predictions will materialize. Variables such as overall market conditions, liquidity, and seller resistance will play critical roles in determining the outcome.