XRP’s Price Can’t be Set by a Central Authority, Expert Debunks Ripple-Related Misconceptions

Ripple’s XRP has long been one of the tokens sub­ject­ed to heavy spec­u­la­tion on behalf of both its own com­mu­ni­ty and the broad­er cryp­tocur­ren­cy market.

That’s per­haps to be expect­ed. It’s one of the O.G. cryp­tocur­ren­cies, and it’s been around for mul­ti­ple years. More impor­tant­ly, it’s been around as part of the top 10 largest coins by means of total mar­ket cap­i­tal­iza­tion and hasn’t fall­en off this list for a while.

This is even more impres­sive when adding in the fact that Rip­ple – XRP’s issuer – has been under fire by the Unit­ed States Secu­ri­ties Com­mis­sion for almost 3 years now.

In any case, there have been mul­ti­ple spec­u­la­tive the­o­ries of how cen­tral author­i­ties could per­haps set the XRP price.

Debunk­ing these and oth­er myths, a well-known blockchain ana­lyst took it to X to clar­i­fy why this isn’t possible:

Decen­tral­ized cryp­to-assets like XRP can­not be “price set.” Price is deter­mined by sup­ply and demand dynam­ics in the glob­al open mar­ket, some­times with influ­ence fac­tors like trad­ing, sen­ti­ment, adop­tion, news, and liquidity.

The decep­tive false price hype shared by peo­ple who know bet­ter has unfor­tu­nate­ly reached unprece­dent­ed levels.

And while the above is inher­ent­ly true, in the case of Rip­ple, specif­i­cal­ly, it does raise a few eye­brows. What if, say, there’s a spe­cif­ic com­pa­ny that owns a lot of a spe­cif­ic asset and is free to offload it on the open mar­ket at will? Also, the decen­tral­ized nature of XRP, of all major cryp­tocur­ren­cies, can cer­tain­ly be put to the test, giv­en Ripple’s tremen­dous impact and objec­tive abil­i­ty to influ­ence its price by dump­ing XRP on the mar­ket – some­thing they’ve been doing for years now.