In the world of cryptocurrencies, particularly XRP, a recent debate has emerged surrounding the possibility of a central authority fixing its price at a higher rate. This discussion was sparked by XRP community influencer Eri, who sought to debunk the notion that XRP’s price could be artificially set. The ensuing debate within the community provided various perspectives on this matter.
Eri emphasized that cryptocurrency prices, including XRP, are fundamentally determined by the forces of supply and demand in the open market. She further pointed out that other factors, such as liquidity, trading activity, adoption, sentiment, and news, play significant roles in influencing price movements. Despite these influences, she firmly dismissed the idea of centralized price fixing.
She also cautioned against the proliferation of deceptive and false price hype, noting that some influencers have been promoting the idea that XRP is undervalued and its price could be elevated through centralized intervention.
The debate within the XRP community grew as enthusiasts shared different viewpoints. One community member suggested a hypothetical scenario where a powerful entity, like OPEC, could trade a barrel of oil for a specific amount of XRP, effectively setting the price. Eri countered by highlighting the concept of arbitrage, which would quickly rectify price disparities by exploiting them.
Another community member proposed that XRP’s price could be set through various means, including a direct sales price from Ripple or a face value determined by multiple parties. Eri clarified that XRP operates as the native digital asset of the XRP Ledger and emphasized that Ripple has no control over its price.
Vandell Aljarrah, founder of Black Swan Capitalist, contributed to the discussion by envisioning a future where XRP achieves a stable and robust value similar to gold. He agreed with Eri’s assessment of supply and demand but anticipated increased demand as the market matured, thanks to XRP’s capped supply of 100 billion tokens.
However, another community member strongly argued that a decentralized asset like XRP could indeed be pegged or fixed to a specific price or asset if overseen by a centralized authority. They likened this to the former “gold window” of the Federal Reserve and suggested that entities like the IMF or Ripple could serve as such authorities.
This spirited debate underscores the complexities and nuances surrounding the pricing mechanisms of cryptocurrencies like XRP. While supply and demand remain fundamental factors, the role of centralized authorities in determining prices remains a contentious topic within the XRP community. As the crypto ecosystem continues to evolve, discussions like these will likely shape the future of digital assets.