The XRP community is buzzing with excitement over a recent proposal that could dramatically impact XRP’s market price. Prominent AI chatbot ChatGPT suggests that if SBI Holdings allocates up to 20% of its assets to an XRP Reserve program, the price of XRP could soar to a two-digit figure.
GAM Investments’ Bold Proposal
The proposal comes from GAM Investments, a shareholder in SBI Holdings, who have raised concerns about the undervaluation of their stake in the company. GAM argues that SBI has not fully capitalized on its investment in Ripple or XRP. To address this, GAM has urged SBI Holdings and its CEO, Yoshitaka Kitao, to establish a strategic XRP reserve. This proposal suggests that allocating a portion of SBI’s assets to bolster XRP holdings could unlock significant value for shareholders, potentially more than traditional cash dividends.
The Potential Impact on XRP’s Price
GAM’s proposal is based on the premise that SBI Holdings, which owns an 8-9% stake in Ripple, could leverage this stake to create substantial value. According to GAM, the XRP holdings through Ripple could surpass SBI’s current market capitalization, presenting a significant opportunity for value creation.
To explore the potential impact, we turned to ChatGPT, an AI chatbot, for an analysis. ChatGPT provided hypothetical scenarios based on different levels of asset allocation by SBI to XRP.
Hypothetical Scenarios for XRP Price Projections
As of March 2024, SBI Holdings held total assets valued at 27.2 trillion Japanese Yen, equivalent to $175.1 billion. ChatGPT analyzed the potential price impact if SBI used 5%, 10%, or 20% of its total assets to purchase XRP, assuming XRP’s circulating supply is approximately 57.45 billion tokens.
- 5% Allocation:
- Investment: $8.75 billion
- Tokens Acquired: Approximately 3.72 billion XRP (6.5% of circulating supply)
- Projected Price Increase: XRP could potentially double to $4.50–$5.00.
- 10% Allocation:
- Investment: $17.5 billion
- Tokens Acquired: Approximately 7.45 billion XRP (13% of circulating supply)
- Projected Price Increase: XRP could rise to $7.00–$8.00.
- 20% Allocation:
- Investment: $35 billion
- Tokens Acquired: Approximately 14.89 billion XRP (26% of circulating supply)
- Projected Price Increase: XRP could surge to $10.00–$15.00.
Will This Proposal Materialize?
While the proposal from GAM Investments is intriguing, it remains uncertain whether SBI will act on these recommendations. The influence of GAM on SBI’s decision-making will depend on the extent of their holdings and their ability to persuade other investors. Moreover, even if SBI carries out this suggestion, there is no guarantee that ChatGPT’s projections would materialize.
Conclusion
The idea of SBI Holdings allocating a significant portion of its assets to an XRP Reserve has stirred excitement within the XRP community. If implemented, this strategy could potentially propel XRP to unprecedented heights, with prices reaching up to $15. However, the realization of this scenario hinges on various factors, including SBI’s decision-making and market conditions. As the community waits with bated breath, the prospect of such a bold move underscores the dynamic and unpredictable nature of the cryptocurrency market.
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