- XRP community member Sherrie debates Ripple’s alleged manipulation, sparked by trading bot allegations.
- Cherry distinguishes manipulation from causation, defending Ripple’s XRP sales.
- Legal scrutiny and the judge’s ruling minimise Ripple’s perceived influence on XRP’s price.
A member of the XRP community who goes by the name of Sherrie has ignited a debate on X, challenging allegations that Ripple has manipulated the price of its XRP token. Sherrie replied to an accusation that Ripple has employed trading bots to manipulate the price of XRP.
Allegations started when documents surfaced which indicated Ripple’s use of trading bots from GSR the global crypto marker maker for institutional XRP sales. Ripple’s CTO denied all these claims, asserting that the firm had ceased such sales.
Meanwhile, Sherrie went on to explain with an example that “Apple selling shares and then rebuying some at a later time is not manipulation. Adding shares to the market does cause the price drop, but doesn’t indicate control of the price. Price is determined by Supply and Demand (Economics concept).”
However, Sherrie has brought forward a compelling argument that differentiates between manipulation and causation in financial markets.
Cherry drew an analogy relating to gravitational force which explains that manipulation entails deliberate influence, while causation stems from natural outcomes of market dynamics. For instance, Ripple’s XRP sales may impact prices but don’t qualify as manipulation, as they follow market laws of supply and demand.
Sherrie went on to explain that Ripple’s sales aren’t aimed at controlling XRP’s price but as most businesses do, they are to raise funds by “dumping”. According to her, after legal scrutiny and audits, Ripple proved their transparent business practices by winning against the SEC’s allegations that the company was selling unregistered securities directly on exchanges.
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