- David Schwartz said crypto markets are generally efficient over the long term.
- He argued any XRP mispricing would be corrected by rational market participants.
- Schwartz pushed back against claims of price suppression or manipulation in XRP markets.
Ripple’s Emeritus Chief Technology Officer, David Schwartz, has responded to growing community concerns about XRP’s price, arguing that open markets are generally efficient enough to correct mispricing over time.
Schwartz, aka JoelKatz, broke his silence after an X user publicly questioned why he had not addressed a week-old post about XRP’s valuation. The token currently trades around $1.50, a level many community members believe undervalues the asset given its real-world utility.
Explaining his initial silence, Schwartz was straightforward: “I didn’t respond to that post because I couldn’t think of anything useful or responsive to say to it.”
Markets Will Self-Correct, He Says
In his response, Schwartz defended the rationality of crypto markets. He argued that prices are rational “largely because there are enough rational wealthy people and the markets for all major cryptocurrencies are open enough and functional enough over medium to long terms.”
In other words, if a genuine pricing gap existed, well-capitalised participants would identify and act on it, pushing the price back toward fair value naturally.
Pushing Back on Manipulation Claims
Schwartz addressed suppression and manipulation claims head-on. He argued that if price suppression could be rationally identified by one participant, others would reach the same conclusion and act on it. As he put it, they “would buy or sell despite that deception and cause the price to, again, be rational.”
Short-Term Inefficiencies Are Possible, But Temporary
Schwartz stopped short of claiming markets were perfect. He acknowledged that short-term inefficiencies do occur but stressed they tend to be brief, as arbitrage between private and public markets moves quickly to close any gaps.
The response drew divided reactions. Some appreciated the transparency, while others felt it fell short of directly addressing why XRP has lagged behind competitors despite Ripple’s expanding partnerships and growing adoption of its payment infrastructure.
Related: Ripple Moves 55M XRP Worth $80M as Analyst Targets $4 Price
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
Source: https://coinedition.com/ripple-emeritus-cto-david-schwartz-breaks-silence-on-xrp-pricing/
