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XRP price stabilization/pegging

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So I know this won't be news to most people - that it looks suspiciously like Ripple is doing something to hold the price - but I just found this item on the Bitbay (a fairly newish alt-coin). It basically explains their motive for price-pegging to extinguish extreme market volatility, and could quite easily be written for Ripple themselves, though they've decided not to mention it officially.

http://bitbay.market/about/pegging/

Quote

Pegging

Digital currencies are known for big fluctuations in value. At times as much as several hundred percent in just a few days. For investors, this may be exactly what they are hoping for, but for consumers and merchants that want the advantages that digital currencies can provide, volatility can destroy commerce within the marketplace.. Bitbay will therefore freeze and release coins to keep the price stable relative to US $! This completely eliminates volatility. Your funds will stay stable and grow!

Fiat currencies show a long history of failed pegs. This is not because pegging in itself can not be done, but because of the huge consequences of maintaining a peg that is not matched by economic realities. The value of a currency directly affects unemployment rate, tax systems and so on. For Bay it is a little easier. We only need to consider stability, effect for consumers and merchants, and investor reactions. That said, we don’t aim to have a peg that stays at the same level forever. What we want to do is to take the big fluctuations out of  digital currency. This concept is known as a rolling peg. A rolling peg provides the short term stability that is needed to generate a thriving marketplace for commerce, yet still supports a free market for investor exchanges.

If I were Ripple, still in the stages of increasing volume/liquidity & wishing to boost viability of XRP for big 'players', this would seem as a wise strategy for now..

CrossingtheRubicon likes this

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7 minutes ago, grondiwam said:

Pegging, or price-fixing? Depends which side of the fence you're on.

Reckon you'd still be in the same field.

I mean to say, the reasons mentioned above are certainly sound enough to justify price 'fixing' or pegging, whatever you choose to call it, if your end goal is to increase adoption in the financial sector and larger business markets. And in the long-term, how can that be bad for the valuation of XRP once the pegging is lifted?

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Two facts arise.

One: Ripple can peg (or fix, or swing) any way they want because of illiquidity. No special technology needed.

Two: Outside of Ripple or NDA partners, nobody knows what's really on the projections.

 

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Ripple doesn't peg the price of XRP to anything and we don't try to manipulate the price (other than attempting to increase the long-term value of the currency). Frequently we're as surprised by daily currency movements as the general public is.

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22 minutes ago, mDuo13 said:

Ripple doesn't peg the price of XRP to anything and we don't try to manipulate the price (other than attempting to increase the long-term value of the currency). Frequently we're as surprised by daily currency movements as the general public is.

Thank you for chiming in :)

The real money to be made is selling tinfoil hats to all these conspiracy theory nuts as it seems there's plenty of them

 

 

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4 minutes ago, princesszerp said:

The real money to be made is selling tinfoil hats to all these conspiracy theory nuts as it seems there's plenty of them

So you're saying... you're saying Ripple should peg the price to tinfoil and nut stocks?

It's a crazy idea. But so crazy, it just might work...

I LIKE IT.

Dsimmo and princesszerp like this

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31 minutes ago, rippledigital said:

So you're saying... you're saying Ripple should peg the price to tinfoil and nut stocks?

It's a crazy idea. But so crazy, it just might work...

I LIKE IT.

Finally someone understands ;)

rippledigital likes this

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2 hours ago, mDuo13 said:

Ripple doesn't peg the price of XRP to anything

 

It is definitely in Ripple's strategy to stabilise prices. They have stated it. They also have a projection.

IMHO they have not manipulated prices heavily. Light touches? For sure.

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