An active commentator in the XRP community has presented arguments to debunk claims that Ripple has been manipulating the price of XRP.
Being the largest XRP holder, Ripple has often come under fire due to allegations that it might be manipulating the cryptocurrency’s price. These claims recently resurfaced when a crypto researcher called attention to documents detailing how the firm used bots to trade XRP.
Notably, Ripple leveraged trading bots from GSR for its past institutional sales of XRP. Some community members have argued that these sales have contributed to XRP’s historical underperformance. However, Ripple CTO debunked these claims, further confirming that the firm already stopped these institutional sales.
Despite the clarification, concerns of price suppression abound. Recently, Cherry, an XRP community figure, presented a fresh argument, contending that Ripple’s actions do not constitute manipulation but are merely a consequence of market dynamics.
Difference Between Manipulation and Causation
Cherry explained the distinction between manipulation and causation in the context of financial markets. According to her, manipulation involves the deliberate influence of a market or asset.
A 🧵 to understanding ‘manipulation’ versus ‘causation’
If you’re interested in the facts then read on as it pertains to XRP.
*Important: I am using a screenshot from another individual not for the purpose to embarrass them so please be respectful by not naming (if you know)
— Sherrie 🌸 (@CherryEmpress21) March 6, 2024
Manipulation often involves deceptive means in an effort to gain advantage. On the other hand, causation refers to the natural outcome of events that occur due to specific triggers or actions.
To illustrate her point, Cherry presented an analogy involving apples and natural gravitational force. Notably, if someone releases an apple previously held aloft, gravity dictates its fall to the ground. This is not manipulation, it is causation.
Similarly, she addressed a common misconception in the stock market, where a company’s decision to sell and then repurchase shares is often misinterpreted as manipulation. Cherry clarifies that while such actions can affect the market price, they do not equate to controlling it, as prices are ultimately governed by supply and demand.
Ripple Not Manipulating XRP Price
She leveraged this argument to contend that Ripple’s sales of XRP, though they had an impact on price, do not translate to price manipulation. surrounding Ripple’s operations.
Cherry emphasized that extensive audits and legal scrutiny have consistently shown that Ripple’s business practices are above board. Notably, the SEC did not particularly accuse Ripple of suppressing XRP’s price but trying to increase it.
In addition, Cherry claimed that a federal judge’s ruling, backed by evidence, has confirmed that XRP’s market movements are in sync with Bitcoin (BTC), suggesting that Ripple’s operations are not the major determinants of the price direction of XRP.
