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.
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