Expert Debunks “XRP Price Set” Theories Amid Insightful Community Debate
XRP community influencer Eri aimed to dispel claims that a central authority could fix a higher price for XRP, triggering a spirited debate in the community.
Eri recently called attention to these claims on X, firmly refuting that XRP’s price can be artificially set. She stressed that prices of assets, like XRP, are inherently driven by supply and demand in the open market.
Decentralized crypto-assets like #XRP, cannot be "price set". Price is determined by supply & demand dynamics in the global open market, sometimes with Influence factors like trading, sentiment, adoption, news & liquidity.
The deceptive false price hype ?shared by people who…
— ?Crypto Eri ?Carpe Diem (@sentosumosaba) September 12, 2023
Eri further highlighted the additional influence of factors such as liquidity, trading, adoption, sentiment, and news in price movements. Still, she debunked the idea of a centralized price-fixing possibility.
She warned against deceptive, false price hype and lamented its unprecedented proliferation. The community has witnessed the emergence of these theories wherein some influencers believe XRP is undervalued and its price could be fixed to a higher rate.
A Growing Debate
Eri’s recent statements received mixed reactions from several enthusiasts. Notably, one community member explored the possibility of a price-setting scenario, contrasting Eri’s viewpoint.
They called attention to a proposed hypothetical scenario where a powerful entity, such as OPEC, could decide to trade a barrel of oil for a specific amount of XRP, effectively “setting the price.”
In response, Eri noted how this could affect equilibrium, leading to excess supply. She highlighted the concept of arbitrage, emphasizing that price disparities would be quickly exploited. This exploitation would remove the difference, resetting the market.
Khaled, another XRP enthusiast, presented an alternative viewpoint, suggesting that XRP’s price could be set in various ways, including a direct sales price from Ripple or a face value determined by multiple parties.
Not true.#XRP is a unique software product and it's price can be set in a couple of different ways for a couple of different reasons.
In one method a set sales price direct from #Ripple and in another a set face value which could be determined by a number of different parties.
— Khaled Elawadi.XRP (@KhaledElawadi) September 12, 2023
Eri countered with a trio of facts, clarifying the nature of XRP as the native digital asset of the XRP Ledger and the lack of control Ripple has over it.
XRP Proponents Cite the Gold Example
Adding weight to the discussion, Vandell Aljarrah, founder of Black Swan Capitalist, offered a different perspective, envisioning a future where XRP achieves a robust and steady value akin to gold.
"Price Set" for #XRP means aiming for a robust and steady value akin to gold, not a stagnant one.
— Vandell | Black Swan Capitalist (@vandell33) September 13, 2023
He aligned with Eri’s assessment of supply and demand. However, the Black Swan Capitalist host predicted a surge in demand as the market matured, thanks to XRP’s capped supply of 100 billion tokens.
In addition, another community member firmly countered Eri’s stance, arguing that a decentralized asset can indeed be fixed or pegged to a specific price or asset.
They believe this could materialize if a centralized authority oversees the process, similar to the former “gold window” of the Federal Reserve. This individual suggests that entities like the IMF or Ripple could serve as such authorities.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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