tweet<\/a> emphasized the decentralized nature of cryptocurrencies, stating, \u201cDecentralized crypto-assets like XRP, cannot be \u2018price set\u2019. Price is determined by supply & demand dynamics in the global open market, sometimes with Influence factors like trading, sentiment, adoption, news & liquidity.\u201d She further warned against the \u201cdeceptive false price hype\u201d that has been circulating within the community.<\/p>\nCan XRP Price Be Set?<\/h2>\n
In a hypothetical scenario presented by a user, the idea of \u201csetting the price\u201d was explored, suggesting 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, \u201cGranted, 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\u2026 In the Crypto Market, you can\u2019t ignore arbitrage.\u201d<\/p>\n
Khaled Elawadi.XRP, another community member, argued that the tokens price could be set in different ways, either directly by Ripple or by determining a face value through various parties. Eri swiftly countered, clarifying the distinction between XRP, the XRP Ledger, and RippleNet, a software solution created by Ripple.<\/p>\n
She emphasized, \u201cFact 1: The digital asset XRP is not a unique software product\u2026 Fact 2: Ripple does not control XRP or the Ledger\u2026 Fact 3: Ripplenet is the name of a software created by the Company Ripple, that can use XRP (or any asset) in a solution.\u201d<\/p>\n
Jesse Hynes, a renowned community lawyer, humorously questioned the persistence of the price set theory, \u201cAre people still saying that there\u2019s going to be a price set?\u201d, to which Eri simply replied, \u201cYes.\u201d<\/p>\n
Neil Hartner, a Senior staff software engineer at Ripple for On-Demand Liquidity (ODL), weighed in on the debate as well, questioning the logic behind two parties artificially setting a price, stating, \u201cWhy 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\u2019t last.\u201d<\/p>\n
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.<\/p>\n
Another perspective emerged from a community member who believed that a decentralized asset\u2019s price could be pegged or fixed, drawing comparisons to the former \u201cgold window\u201d of the Federal Reserve. They posited that entities like the IMF or Ripple could act as central authorities in such a scenario.<\/p>\n
As the debate continues, it\u2019s clear 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.<\/p>\n
At press time, XRP traded at $0.4806.<\/p>\n
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