Jakarta, Pintu News ā Discussions about a possible price suppression of XRP have resurfaced after an anonymous user posted his analysis on social media. With the SECās lawsuit against Ripple coming to an end, new speculations have emerged regarding factors that might affect XRPās price performance.
Check out the full analysis here!
In December 2020, the SEC sued Ripple alleging that it conducted an unregistered securities offering through the sale of XRP (XRP). This prolonged legal conflict has had a major impact on the price of XRP. Although Ripple managed to win the lawsuit, there are allegations that other factors also played a role in suppressing the price of XRP.
One of the factors highlighted is Rippleās large holdings of XRP, where the company has over 43 billion XRP held in escrow and released every month. While it is claimed that these sales do not affect the market price, some analysts argue that this could be a strategy to keep the price of XRP low.
Read also: Decision Day for Ethereum: Pectra Upgrade and FOMC Decision!
In addition to Rippleās large holdings, there are concerns about large transactions from small wallets that hold significant amounts of XRP. These large transactions are often followed by a price drop, which raises suspicions about market manipulation.
However, there is no concrete evidence to suggest any deliberate control or interference in this regard. A scientific study even found a negative correlation between transaction structure and price, with a coefficient of -0.73, suggesting that complex network dynamics may play a role in influencing the price of XRP.
Read also: Jerome Powellās Speech: Will the Crypto Market Rally or Crash?
Some conspiracy theories claim that big banks are deliberately suppressing the price of XRP to buy it cheaply before mass utility adoption. While it sounds like a conspiracy, this theory keeps surfacing for several reasons.
In 2017, when the price of XRP soared, network activity increased sharply. However, some community clusters shrank before the key price drop, and some nodes dominated the network, which also raised concerns about market distortions.
Thatās the latest information about crypto. Follow us on Google News to stay up-to-date on the world of crypto and blockchain technology.
Enjoy an easy and secure crypto trading experience by downloading Pintu crypto app through Google Play Store or App Store now. Also, experience web trading with advanced trading tools such as pro charting, various types of order types, and portfolio tracker only at Pintu Pro. Pintu Pro Futures is also available, where you can buy bitcoin leverage, trade btc futures, eth futures and sol futures easily from your desktop!
*Disclaimer
This content aims to enrich readersā information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an assetās past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.
Reference