In a recent series of exchanges on X, a prominent XRP community influencer, Crypto Eri, has addressed the controversial theory surrounding the XRP price and its potential manipulation by a central authority. This debate has sparked discussions among enthusiasts, experts, and insiders within Ripple.
Eri initially took to Twitter to emphasize the decentralized nature of cryptocurrencies, stating, “Decentralized crypto-assets like XRP cannot be ‘price set.’ Price is determined by supply and demand dynamics in the global open market, sometimes influenced by factors such as trading, sentiment, adoption, news, and liquidity.” She also warned against the deceptive false price hype that has been circulating within the community.
The concept of “setting the price” was explored in a hypothetical scenario presented by a user. It suggested that if a powerful entity like OPEC decided to trade a barrel of oil for 1 XRP, it would effectively set the price. Eri responded by acknowledging that artificial price setting has been attempted in the past but pointed out that if the price is above the equilibrium level, the quantity supplied has always exceeded the quantity demanded. She also emphasized the importance of arbitrage in the crypto market.
Another community member, Khaled Elawadi.XRP, argued that the price of XRP could be set in different ways, either directly by Ripple or by determining a face value through various parties. Eri quickly countered this argument by clarifying the distinction between XRP, the XRP Ledger, and RippleNet, a software solution created by Ripple. She stated, “Fact 1: The digital asset XRP is not a unique software product… Fact 2: Ripple does not control XRP or the Ledger… Fact 3: Ripplenet is the name of a software created by the Company Ripple, that can use XRP (or any asset) in a solution.”
Jesse Hynes, a renowned community lawyer, humorously questioned the persistence of the price set theory, to which Eri simply replied, “Yes.” Neil Hartner, a Senior staff software engineer at Ripple for On-Demand Liquidity (ODL), also joined the debate, questioning the logic behind two parties artificially setting a price. He stated, “Why would 2 parties do that unless they want to lose a lot of money? Unless those 2 parties are willing to defend the price and not run out of money, it won’t last.”
The debate took another turn when Vandell Aljarrah, founder of Black Swan Capitalist, drew parallels between XRP and gold, suggesting that the token could achieve a stable value similar to gold in the future. He cited the capped supply of 100 billion tokens as a potential factor for increased demand as the market matures.
Another perspective emerged from a community member who believed that the price of a decentralized asset could be pegged or fixed, drawing comparisons to the former “gold window” of the Federal Reserve. They posited that entities like the IMF or Ripple could act as central authorities in such a scenario.
As the debate continues, it is evident that the community remains divided on the issue. While some believe in the potential for a centralized price setting, others, like Eri, firmly stand by the principles of supply, demand, and market dynamics.
At press time, XRP is trading at $0.4806.
Source: [TradingView.com](https://www.tradingview.com/x/e3p96lpG/)
❗Follow us on Twitter to get all the latest crypto news as soon as they're out! 🚀
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
View J-S Tremblay website
