The price of XRP has been a source of ongoing debate within the cryptocurrency community. Accusations of price manipulation by Ripple, a major holder of XRP, have persisted, prompting various arguments.
One such argument was shared by a prominent XRP community member, Cherry, who seeks to debunk these claims, while also acknowledging the ongoing legal and regulatory complexities surrounding the issue.
Read Also: 429 Million XRP Moved By a Top Exchange and Whales in the Last 24 Hours. Here’s the Destination
In a post on X, Cherry emphasizes the crucial distinction between manipulation and market-driven price changes. Manipulation involves intentional and deceptive actions taken to influence an asset’s price for personal gain.
These actions often involve creating false or misleading information, artificially inflating or deflating trading volume, or engaging in coordinated buying or selling activities to achieve a desired price outcome.
In contrast, market-driven price changes are the natural consequences of supply and demand forces interacting within the market. When demand for an asset increases relative to its supply, the price tends to rise. Conversely, when supply outstrips demand, the price typically falls.
Cherry argues that Ripple’s past sales of XRP while impacting the price, do not definitively constitute manipulation based on the current understanding of the situation. Some of these sales were conducted through market makers, such as GSR, and were reportedly transparent, adhering to relevant regulations.
However, as we reported earlier, some community members argue that the sheer volume of these sales, particularly in the early years of XRP, could have suppressed the price by exceeding market demand.
Ripple has consistently maintained that its XRP sales were conducted legally and transparently. They emphasize that independent audits found no evidence of manipulative practices. Additionally, Times Tabloid reported Ripple’s Chief Technology Officer (CTO), publicly stating the company ceased programmatic sales of XRP in 2019.
However, the ongoing lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Ripple in 2020 complicates the picture. The SEC alleges that Ripple sold XRP as unregistered securities in the form of XRP, raising over $1.3 billion from investors.
While the SEC’s initial complaint does not explicitly mention price manipulation, some interpret it as implying that Ripple’s actions unfairly influenced the market.
Read Also: Guard Your XRP: Top Financial Blog Exposes Potential Market Manipulation Targeting XRP
Cherry further emphasizes that Ripple’s actions are not the sole determinants of XRP’s price. A court ruling, backed by evidence, has shown a strong correlation between XRP’s price movements and those of Bitcoin (BTC), the flagship cryptocurrency.
This suggests that broader market trends and external factors, such as regulations, exchange listings, and industry adoption, significantly influence XRP’s price, not solely Ripple’s internal operations.
Understanding the factors influencing XRP’s price requires a nuanced perspective that acknowledges the interplay between market dynamics, external factors like Bitcoin’s price movements, potential regulatory considerations surrounding Ripple’s activities, and the ongoing legal battle with the SEC.
Follow us on Twitter, Facebook, Telegram, and Google News
Shiba Inu is experiencing a surge in market activity, capturing attention with approximately 17 trillion…
Crypto chartist CryptoAmsterdam recently advised Shiba Inu (SHIB) investors to view every price dip as…
David Schwartz, Ripple’s Chief Technology Officer, recently highlighted significant distinctions between contracts and “reasonable reliance,”…
Bitcoin's recent all-time highs have brought the cryptocurrency market to a crucial turning point that…
Leading figures in the cryptocurrency world are backing a new token that costs just four…
Initial Coin Offerings (ICOs) is a way to raise funds in the blockchain and cryptocurrency…