In a current sequence of exchanges on X, outstanding XRP group influencer, Crypto Eri, addressed the controversial concept that the XRP worth may be artificially set by a government. The debate has ignited discussions amongst fanatics, consultants, and Ripple insiders.
Eri’s preliminary tweet emphasised the decentralized nature of cryptocurrencies, stating, “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.” She additional warned towards the “deceptive false price hype” that has been circulating inside the group.
Can XRP Price Be Set?
In a hypothetical state of affairs offered by a person, the concept of “setting the price” was explored, suggesting that if a strong entity like OPEC determined to commerce a barrel of oil for 1 XRP, it could successfully set the worth. Eri responded, “Granted, artificial price setting has been tried, but If the price is above the equilibrium level, then the quantity supplied has always exceeded the quantity demanded… In the Crypto Market, you can’t ignore arbitrage.”
Khaled Elawadi.XRP, one other group member, argued that the tokens worth might be set in several methods, both instantly by Ripple or by figuring out a face worth by way of numerous events. Eri swiftly countered, clarifying the excellence between XRP, the XRP Ledger, and RippleWeb, a software program resolution created by Ripple.
She emphasised, “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 famend group lawyer, humorously questioned the persistence of the worth set concept, “Are people still saying that there’s going to be a price set?”, to which Eri merely replied, “Yes.”
Neil Hartner, a Senior workers software program engineer at Ripple for On-Demand Liquidity (ODL), weighed in on the controversy as effectively, questioning the logic behind two events artificially setting a worth, stating, “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 one other flip when Vandell Aljarrah, founding father of Black Swan Capitalist, drew parallels between XRP and gold, suggesting that the token might obtain a steady worth much like gold sooner or later. He cited the capped provide of 100 billion tokens as a possible issue for elevated demand because the market matures.
Another perspective emerged from a group member who believed {that a} decentralized asset’s worth might be pegged or fastened, drawing comparisons to the previous “gold window” of the Federal Reserve. They posited that entities just like the IMF or Ripple might act as central authorities in such a state of affairs.
As the controversy continues, it’s clear that the group stays divided on the problem. While some imagine within the potential for a centralized worth setting, others, like Eri, firmly stand by the rules of provide, demand, and market dynamics.
At press time, XRP traded at $0.4806.
Featured picture from iStock, chart from TradingView.com