XRP Price Manipulation Claims Spark Market Debate

Versan Aljarrah, the CEO of Black Swan Capitalist, has sparked a heated debate by asserting that the price of XRP, a digital currency, was predetermined by major financial institutions. This claim has raised significant concerns about the transparency and fairness of the XRP market. According to Aljarrah, the pricing of XRP is not determined by open-market trading but rather through a process similar to the pre-IPO phase in traditional finance, where hedge funds, banks, and financial institutions negotiate an asset’s price before it goes public.

Aljarrah specifically mentioned that institutions such as JP Morgan, BlackRock, the Bank for International Settlements (BIS), and the International Monetary Fund (IMF) were involved in this process. He argued that these institutions have already agreed on XRP’s price for use in their systems, effectively locking in its value through private agreements before it became widely available to the public. This perspective aligns with the stakeholder capitalism model, which suggests that major financial institutions and central banks play a crucial role in shaping the global economy.

Aljarrah’s theory has garnered both support and criticism within the crypto community. Some investors believe that if institutions knew the predetermined price of XRP, they could strategically place low buy orders to accumulate more, potentially disadvantaging retail investors. This practice, if true, would contradict the core principles of cryptocurrency, which aim to provide a decentralized and fair financial system.

Despite the controversy, Aljarrah remains optimistic about XRP’s future. He predicts that the price could reach three or even four-digit levels, far beyond its current valuation. However, this prediction is based on financial modeling and market projections, which are speculative and depend on the actual utility and demand for XRP in the future global financial system.

On the other hand, veteran trader Peter Brandt has a different view. He predicts that XRP’s price could fall to $1 in the short term, which is significantly lower than Aljarrah’s expectations. This divergence in opinions highlights the uncertainty and volatility surrounding XRP’s price movements.

Additionally, there are concerns about the real-world utility of XRP. Despite its $120 billion market cap, the XRP Ledger records less than $50,000 in daily decentralized exchange (DEX) trading volume. This discrepancy suggests a significant gap between its market value and actual usage. Furthermore, the XRP Ledger lacks sufficient nodes and validators compared to other leading blockchains, raising questions about its robustness and security.

In summary, Versan Aljarrah’s claim that XRP’s price is predetermined by major financial institutions has sparked intense debate and raised concerns about market transparency. While some support his theory, others argue that it contradicts the principles of cryptocurrency. The future of XRP remains uncertain, with predictions ranging from significant price increases to potential declines. The real-world utility and technical infrastructure of XRP also face scrutiny, adding to the complexity of its market dynamics.