Versan Aljarrah, CEO of Black Swan Capitalist, sparked controversy on platform X by stating that global financial institutions set the price of XRP long ago.
His comment sparked intense debates in the crypto community and raises concerns about the transparency of the XRP market. Recent data highlights a significant gap between its market value and real-world utility.
Controversial theory about XRP: did major banks set its value?
Aljarrah argues that the price of the altcoin is not shaped by open market trading, although many retail investors assume otherwise. He compares the pricing process of XRP to the pre-IPO phase in traditional finance, where hedge funds, banks, and financial institutions negotiate the value of an asset before it becomes public.
He claims that JP Morgan, BlackRock, BIS, and the IMF participated in this process but provides no concrete evidence to support this claim.
In this case, the 'pre-IPO' phase for XRP has already occurred. The largest financial players in the world have adopted XRP behind closed doors and have already agreed on its price for use in their systems, Aljarrah said.
Aljarrah also claims that Ripple – the company behind XRP – has integrated its technology into central banks around the world, including both large economies and smaller nations like Barbados and Caribbean countries. He believes that global institutions have committed to using XRP as a bridge currency for cross-border transactions.
His view aligns with stakeholder capitalism, a model promoted by the World Economic Forum (WEF). In this model, large financial institutions and central banks shape the direction of the global economy.
Aljarrah also says that the price of XRP was 'fixed' through private agreements before becoming widely available to the public. He predicts that the currency could reach price levels of three or even four digits, far beyond its current valuation of $2.08.
Financial modeling and market projections suggest that the price could reach three to four-digit ranges, but this is still speculative based on actual utility and demand for XRP in the future global financial system, Aljarrah predicted.
While some in the crypto space support Aljarrah's theory, others argue that if institutions knew the predetermined price of XRP, they could have strategically placed low buy orders to accumulate more, hurting retail investors.
If institutions already know the pre-defined price, it makes sense for them to place low buy orders to push the price down and accumulate XRP at the expense of retail. This is not only unethical—it contradicts the whole purpose of crypto, commented investor SVS.
Veteran trader Peter Brandt predicts that XRP may drop to $1.
Other analysts have opposing opinions. Veteran trader Peter Brandt predicts that the price of XRP could drop to $1 in the short term. Thus, falling well below Aljarrah's expectations.
Price prediction for XRP by Peter Brandt. Source: Peter Brandt.
Meanwhile, a report from BeInCrypto reveals that despite a market value of $120 billion, its network records less than $50,000 in daily DEX trading volume. The XRP Ledger lacks sufficient nodes and validators compared to other leading blockchains.
On-chain researcher Aylo called XRP 'the biggest financial scam the world has ever seen.'
The article CEO of Black Swan Capitalist states that the price of XRP is predetermined was first seen in BeInCrypto Brazil.