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Could Ripple’s XRP Become SBI Holdings’ Secret Weapon for Growth?
In recent times, the cryptocurrency space has witnessed unprecedented growth, with many assets experiencing significant price increases. One such asset that has garnered substantial attention is Ripple’s XRP, which has surged a staggering 500% in just one month alone. Amidst this turmoil, SBI Holdings, one of Japan’s financial giants, has come under pressure to focus more on its vast XRP holdings. And rightly so.
It appears GAM Investments, a global asset manager, has proposed an innovative strategy for the company to unlock its hidden potential and reposition itself as a major player in the cryptocurrency market. The proposal suggests that SBI Holdings adopt a bold approach by investing heavily in XRP, with the possibility of creating a buyback program that would increase the token’s value while showcasing SBI’s commitment to the crypto space.
As it stands, SBI Holdings is holding an estimated 8-9% share in Ripple Labs and owns a considerable amount of XRP tokens. However, its current market capitalization of JPY 1.2 trillion falls far short of the projected value of these assets, sitting at an estimated JPY 3.9 trillion.
This significant gap between SBI’s actual net asset value (NAV) and perceived market value could be bridged through GAM’s proposal. By creating a buyback program that reduces the XRP supply in circulation, the token’s price would likely increase. This dual benefit of increasing SBI’s market value while positively impacting the crypto space has led many to speculate whether this might become the secret weapon for growth and success.
In light of this development, it is crucial for investors and stakeholders alike to closely follow any further developments regarding GAM’s proposal.
Source: coinpedia.org
