A distinguished member of the XRP community and blockchain analyst, Crypto Eri, has weighed in on why, contrary to some public opinions, Ripple cannot control its native token XRP’s price. 

XRP “Decentralized” Nature Makes Price Set Not possible

In a tweet shared on her X (formerly Twitter) platform, Crypto Eri stated, “Decentralized crypto-assets like XRP can’t be price set.” As a substitute, XRP’s price is decided by supply & demand dynamics in the worldwide open market, sometimes with Influence aspects like trading, sentiment, adoption, news & liquidity.”

XRP is the native token of the Ripple ecosystem, and for a while now, some crypto community members have asserted that the crypto company can control the worth of the XRP. 

Nevertheless, the pro-XRP blockchain analyst has put out this tweet to debunk this belief. She further mentioned that the “deceptive false price hype” has “unfortunately reached unprecedented levels. 

For one, Crypto Eri noted that the XRP token is decentralized. As such, there isn’t a way Ripple can set the token’s price, considering it has little or no control despite being the issuer. Reasonably, as mentioned by Crypto Eri, such crypto tokens bow to the pressure of the “supply and demand dynamics,” meaning that the interest of traders within the asset ultimately sets a token’s price. 

That’s where price discovery is available in, because the interaction between buyers and sellers is generally used to find out the fair market value of an asset.

An Artificial Price Set?

One other distinguished figure within the XRP community, Mickle, had earlier released a tweet (before Crypto Eri’s tweet) to spotlight how absurd a ‘price set’ theory was. He mentioned that if a cryptocurrency may very well be price set, it will be an “infinite money glitch.”

He jokingly suggested that if a price set was possible, he could easily fork the XRPL and set the “price of XRP2.0 to 1,000,000.”

In response to Mickle’s tweet, one other X user raised the opportunity of Ripple setting XRP’s price “artificially” and gave a speculative example of OPEC setting the oil price. He explained further in a subsequent tweet that “deep pockets” or “coordinated efforts of many powerful entities” could help set the asset’s price artificially. 

This point likely suggests that Ripple could simply set the XRP price by delving into the XRP market and buying the token at a price higher than its fair market value. Crypto Eri weighed in on this, admitting that artificial price setting had been tried prior to now. Despite this, she believes that the role of arbitrageurs within the crypto market can’t be ignored as these traders will eventually balance the dimensions and eliminate the worth disparity.

Ripple XRP price chart from Tradingview.com

Token price performance over time | Source: XRPUSD on Tradingview.com

Featured image from The Currency Analytics, chart from Tradingview.com

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