Popular XRP Community influencer, Crypto Eri, addressed the controversial idea that the XRP price might be artificially established by a central authority. This took place on X (formerly known as Twitter). Discussions have been sparked by the argument among Ripple insiders, experts, and enthusiasts.
The first tweet from Eri highlighted the decentralized aspect of cryptocurrencies, saying, “Decentralised crypto-assets like XRP, cannot be ‘price fixed’. Price is decided by supply and demand dynamics in the global open market, sometimes with Influence factors like trading, sentiment, adoption, news & liquidity.” She went on to caution against the “deceptive false price hype” that has been going through the community.
Can the XRP Price Be Set?
The concept of “setting the price” was examined in a hypothetical case study provided by a user. The user suggested that a strong organization like OPEC could effectively set the price if it decided to exchange 1 barrel of oil for 1 XRP. 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.”
Another member of the community, Khaled Elawadi.XRP stated that the token’s price might be determined in some ways, either directly by Ripple or by establishing a face value through some partners. Eri quickly rebutted, defining the difference between XRP, the XRP Ledger, and RippleNet, a software solution developed by Ripple.
She emphasized, “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 software created by the Company Ripple that can use XRP (or any asset) in a solution.”
Famous community lawyer, Jesse Hynes, jokingly inquired, “Are people still saying that there’s going to be a price set?” Eri simply said, “Yes.”
Another member in the discussion was Neil Hartner, a Senior Staff Software Engineer at Ripple for On-Demand Liquidity (ODL). He questioned the reasoning behind two parties artificially creating a price, asking, “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.”
Read article: Ripple President Shares Insight on How Defi Could Transform International Payments With XRP
The Community Shares More Insights About XRP Price Set Theory
Vandell Aljarrah, the creator of Black Swan Capitalist, compared XRP to gold. He suggested that the token would eventually acquire a steady value similar to gold. From here, the debate took a new direction. As the market develops, he suggested that the 100 billion token cap on supply may lead to higher demand.
Another viewpoint was expressed by a member of the community who thought that the price of a decentralized asset may be fixed or pegged, evoking analogies to the Federal Reserve’s previous “gold window”. They proposed that organizations like the IMF or Ripple might serve as the central authorities in such a case.
The community is still divided on this subject as the discussion goes on. Some people, like Eri, completely support the concepts of supply, demand, and market dynamics. Whereas, others, like those who believe in the possibilities for a centralized price setting, do not.
At the time of writing, XRP is priced at $0.4812, reflecting a 0.42% rise over the past 24 hours.
Read Also: XRP’s Future Remains Uncertain: Are the Bears in Control?
The post Can XRP Price Be Set? Here is What the Community Says appeared first on FXCryptoNews.
