As XRP ($2.02) hovers around the $2 mark, speculations about its price suppression continue to make waves within the cryptocurrency community. A recent thread by the pseudonymous pundit “Pumpius” delves into why XRP’s price has been kept low and who may benefit from this strategy. According to Pumpius, XRP is unique in the cryptocurrency space due to its role in financial infrastructure. Unlike other cryptocurrencies, which often surge based on hype or speculative momentum, XRP has tangible utility and real-time cross-border settlement. This, Pumpius argues, makes XRP both too valuable and too threatening to experience a significant price surge in the near future.

XRP’s Utility: A Threat to Traditional Financial Systems

Pumpius argues that XRP’s utility, which allows for real-time, cross-border settlement without the need for pre-funding, is a significant reason why its price is suppressed. Unlike meme coins, which rise on speculative hype, XRP has real-world applications that challenge traditional financial systems. These systems, which include established entities such as SWIFT, banks, and even stablecoin issuers, are under threat from XRP’s ability to offer faster, cheaper, and more efficient global payment solutions.

He further explains that XRP differs from other cryptocurrencies in its role within the financial ecosystem. Its utility extends beyond being just a digital asset. XRP is a direct competitor to the existing financial infrastructure, and this threat likely contributes to the suppression of its price.

Strategic Price Suppression: Who Benefits from Cheap XRP?

According to Pumpius, the persistently low price of XRP is not an accident; it is part of a calculated strategy. He argues that key institutions, such as central banks, private liquidity providers, and global payment processors, benefit from XRP’s undervaluation. These entities are quietly building on the XRP Ledger (XRPL) infrastructure, all while enjoying the benefits of cheap on-demand liquidity and low access costs to future financial rails.

By keeping XRP’s price low, retail speculation is reduced, which in turn decreases the likelihood of regulatory scrutiny. With a low price, these institutions can accumulate large amounts of XRP before the public catches on to its potential. Once these institutions have secured their position, they will be in a much stronger position to take advantage of XRP’s utility, which could lead to substantial price appreciation in the future.

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Role of the SEC Lawsuit in Suppressing XRP’s Value

One of the most controversial points raised by Pumpius is the role of the SEC lawsuit against Ripple. He suggests that the legal drama surrounding Ripple and the SEC may not be a simple legal battle over whether XRP is classified as a security. Instead, Pumpius argues that the lawsuit serves as a convenient cover to suppress interest in XRP and delay its adoption long enough for institutions to secure their positions.

Ripple has secured deals with over 40 financial entities, including banks and governments, in regions such as the UK, UAE, and Singapore. Additionally, Ripple has launched digital currency pilots in places like Palau and collaborated with the Digital Pound Foundation. All of this has occurred while the lawsuit remains unresolved, which, according to Pumpius, suggests that the legal battle may be serving as a smokescreen to keep XRP’s price suppressed while institutional players quietly position themselves.

Expanding XRP Ledger Ecosystem: A Deeper Threat

Beyond Ripple’s efforts, Pumpius notes that the XRP Ledger ecosystem is quietly expanding. He points to platforms like Doppler Finance, which offer on-chain yields and decentralised functions traditionally dominated by hedge funds and asset managers. These innovations, Pumpius argues, represent a deeper threat to the financial establishment beyond just replacing payment rails. The XRP Ledger, by supporting decentralised finance (DeFi) applications, is in the process of reimagining entire asset management structures.

This expansion of the XRP ecosystem is not just about improving payment systems but also creating decentralised alternatives to traditional financial services. As these DeFi applications gain traction, they become an even greater threat to the established financial system, further solidifying XRP’s potential.

Conclusion: Price Suppression as a Temporary Strategy

Pumpius stresses that XRP’s current price stagnation is part of a broader, strategic accumulation by elites. He believes that the suppression of XRP’s price is temporary and that it is designed to shake out weak hands and limit retail participation. Once these objectives are met, XRP’s price may be allowed to rise, benefiting the institutions that have quietly accumulated large amounts of the asset.

“They suppress what they can’t stop until they control it,” says Pumpius. His analysis suggests that XRP’s price suppression may be a necessary step in ensuring that the asset’s eventual rise benefits the institutions that have patiently accumulated it over time. While the suppression of XRP’s price may seem frustrating to retail investors, it may ultimately be part of a larger plan to establish XRP as a dominant force in the financial world.

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