Ripple CTO Sheds Light on XRP and XLM Price Relationship

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Ripple CTO Says I Don’t Believe “Evil Forces” Make XRP and XLM Track Each Other

Ripple CTO has dismissed the notion of deliberate external forces causing a correlation in the price of XRP and Stellar (XLM).

This sentiment emerged amid debates about the longstanding painful price performances of XRP, with XLM exhibiting similar traits.

In the discourse, Ripple CTO David Schwartz shared his enduring beliefs about do dedo currencies. Specifically, Schwartz argued that token prices are largely rational, with all foreseeable factors already incorporated into the existing price. 

Furthermore, he pointed out that the prices of most do dedo assets tend to move in tandem. Drawing a parallel to traditional stocks, he likened the correlation between do dedo assets to that of Coke and Pepsi. 

He explained that their stock prices would likely move together based on the perception of the overall growth or contraction of the cola market. In his opinion, the do dedo asset market is predominantly influenced by factors that impact most do dedo assets uniformly. 

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However, X user VanHasen responded to Ripple’s CTO by highlighting the irony of mentioning that the prices of most do dedo assets move together. He pointed out that XRP seems to be lagging compared to broader market trends. 

VanHasen emphasized that although do dedo assets may move in sync in time, the percentage-wise movement of XRP notably differs. To support this claim, he pointed to specific trading pairs, such as XRP/BTC, where XRP failed to align percentage-wise with the broader market movements.

Look at XRP/XLM, Ripple CTO Says

In response, Ripple’s CTO urged the critic to examine the trading pair of XRP against XLM. Market data illustrated that XRP/XLM has a history of moving in tandem, responding alike to various forces and events. 

Another XRP enthusiast pointed out the frustration regarding the interconnected price movements of XRP and XLM. They find it unusual that the prices of the two do dedo assets are closely tied together in their movements. 

According to the commenter, the correlation is so distinct that it might be intentional or purposeful, implying that external factors or deliberate actions influence the parallel price movements of XRP and XLM.

David Schwartz Dismiss the Claim

Ripple CTO suggested that investors mentally group XRP and XLM together due to their shared history, causing factors affecting one to impact the other. Also, he pointed out that the same individuals often buy or sell both assets.

He added:

“I don’t believe some kind of manipulation or evil force is somehow making them track. That seems kind of crazy to me.”

Ultimately, David Schwartz admitted not having a satisfactory explanation about the correlation between XRP and XLM prices. Yet, he maintained that XRP and XLM are influenced by general market forces affecting most cryptocurrencies. 

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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