Why is it difficult to manipulate the daily volume of billions in XRP transactions? A look at market liquidity from the custody mechanism.

Question

[Coin World] The claims about XRP price manipulation are actually unfounded. Let's look at the current data: XRP's daily trading volume is in the billions of dollars, which is substantial enough. Is it basically impossible for a single entity to control the price? Even Ripple itself cannot do it.

Liquidity is key here. Institutional investors buy from the open market, sign agreements to lock up funds, and Ripple releases the escrowed funds on a fixed monthly schedule. This operation ensures transparency, and market participants are well-informed. It is important to mention that XRP, like other crypto assets, is still influenced by market sentiment and overall market fluctuations, which is normal in the industry. However, with such mechanisms in place, at least the possibility of unilateral manipulation is eliminated.

digital_archaeologist · Accepted Answer

Billions in volume are indeed not to be taken lightly; if you want to manipulate, you need to have that much capital.

The transparency of the custody mechanism is acceptable; at least it doesn&#39;t feel so uncomfortable.

XRP will fall if it needs to fall; don&#39;t treat liquidity as a talisman.

consensus_whisperer · Answer

Billion-dollar trading volume is indeed solid; how much capital would one need to manipulate it? This logic is sound.

HorizonHunter · Answer

Billions in Trading Volume really don&#39;t scare anyone; if someone wanted to manipulate it alone, they would have already been crushed by the market.

not_your_keys · Answer

Do you think a multi-billion dollar market can be manipulated by a single institution? Wake up, man, that&#39;s a fantasy.

To be honest, the custodial mechanism is relatively transparent, but market sentiment can still make the coin price a complete mess.

ZenMiner · Answer

The billions in volume are indeed intimidating, but I still have some doubts about Ripple&#39;s monthly release mechanism... Transparency is one thing, but there are so many ways to manipulate it.

WagmiWarrior · Answer

Billions in trading volume is indeed solid, at this level, trying to manipulate is basically a death wish.

The manipulation theory should have stopped long ago; with this level of transparency, who would dare to mess around?

Liquidity is deep enough that Ripple can&#39;t even move the price itself; what are you all thinking?

To be honest, this mechanism is designed to prevent such things, which is much better than those black-box projects.