Ripple CEO debunks the most popular myth about XRP manipulation

For years, circulating claims in the crypto market have suggested that Ripple controls the value of XRP under the guise of transparency. These suspicions relate to both price mechanisms and closed deals with large institutions. However, a recently published interview with Brad Garlinghouse, CEO of Ripple, sheds new light on each of these issues by providing official explanations that have long remained the subject of speculation.

The current price of XRP is approximately $1.97, reflecting organic market demand without influence from corporate manipulation.

How the price of XRP is truly formed in the market

Garlinghouse explicitly denies claims of price setting for financial partners. Using MoneyGram as an example, he explained the process: when transferring funds from dollars to Mexican pesos, the company buys XRP at current market quotes. There are no special discounts or hidden deals.

This position contradicts the widespread narrative that selected partners receive favorable terms. Instead, all participants, including large institutions, face the same market conditions — volatility, liquidity constraints, and transparent pricing. It is especially important to understand that the actual purchase cost is calculated using a straightforward mechanism without hidden coefficients, which are often confused with discount calculators in traditional finance.

Institutional lock-ups: market protection rather than control tools

Garlinghouse also addressed a frequently misunderstood issue — institutional lock-ups. He acknowledged that large buyers sometimes face restrictions on the timing and volume of resale to the market. However, the reason for this is not manipulation but to prevent market shocks.

When “some party can buy a huge amount of XRP and immediately dump it on the market,” it threatens liquidity and price stability. The lock-up structures are tied to the overall market volume and designed to protect it. These mechanisms are widely used in traditional finance to reduce systemic risk.

No hidden concessions and transparent deals

When the interviewer asked whether institutions receive cheaper XRP in exchange for lock-ups, Garlinghouse confirmed that this is generally correct. However, such pricing considerations are always accompanied by strict contractual restrictions.

It is important to understand that such structures are standard in the global financial system, where large block transactions are regularly associated with restrictions to reduce systemic risk. There is no secrecy or borrowed influence on pricing here.

The true price formation mechanism: demand, supply, utility

The core message from Ripple’s CEO is simple: XRP is traded on open, transparent exchanges where the price is determined by real demand and supply. Now that XRP is officially regarded as a digital commodity, its value increasingly depends on practical use in transactions, liquidity efficiency, and global demand for settlement services.

In markets of this scale and depth, prolonged centralized manipulation would be immediately noticeable and technically impossible. No individual player, including Ripple itself, can unilaterally control price movements.

Reality versus speculation

The renewed interview shows that many critical narratives are based on assumptions rather than verified facts. The value of XRP is formed in real-time by millions of market participants responding to utility, adoption, and specific liquidity indicators. Garlinghouse clearly demonstrated that the game around XRP is significantly more transparent than the skeptical claims often suggest — and this is now confirmed at an official level.