In a recent development within the XRP community, a member known as Sherrie has sparked a heated debate regarding allegations of price manipulation surrounding Ripple’s XRP token.
The controversy arose after documents emerged suggesting Ripple’s utilization of trading bots from GSR, a global crypto market maker, for institutional XRP sales. Despite these claims, Ripple’s Chief Technology Officer (CTO) has vehemently denied any wrongdoing, asserting that the company had ceased such sales.
Sherrie challenges manipulation allegations
Sherrie, a prominent voice within the XRP community, has challenged the accusations by distinguishing between manipulation and causation in financial markets. In response to claims that Ripple’s actions constitute manipulation, Sherrie provided a compelling analogy, likening market dynamics to gravitational force.
She explained that while Ripple’s XRP sales may influence prices, they do not necessarily qualify as manipulation, as they adhere to the fundamental laws of supply and demand.
Drawing upon economic principles, Sherrie emphasized that adding shares to the market, akin to Ripple’s XRP sales, may cause price fluctuations but does not inherently indicate control over the price.
She underscored that price determination in financial markets is governed by the interplay of supply and demand rather than deliberate manipulation by market participants.
Ripple’s sales aimed at fundraising
Furthermore, Sherrie elucidated that Ripple’s sales of XRP are primarily aimed at raising funds rather than exerting control over its price. She likened Ripple’s actions to those of other businesses engaging in fundraising endeavors, colloquially called “dumping.”
According to Sherrie, Ripple has undergone extensive legal scrutiny and audits, successfully defending its transparent business practices. She cited Ripple’s recent legal victory against the U.S. Securities and Exchange Commission (SEC), wherein the company prevailed against allegations of selling unregistered securities directly on exchanges.
The ongoing debate within the XRP community underscores the complexities surrounding allegations of price manipulation in the cryptocurrency market. While documents indicating Ripple’s use of trading bots have fueled suspicions, Sherrie’s argument sheds light on the nuanced distinction between manipulation and market dynamics. As the discussion continues, stakeholders await further clarity on the implications of Ripple’s actions and their impact on the XRP ecosystem.
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