Allegedly, the cryptocurrency market has been prone to manipulation since its inception. Many accuse that the cryptocurrency ecosystem as of now is faulty and prices can be manipulated by some big forces in the game. Being the biggest cryptocurrency in terms of market capitalization, bitcoin has been the center of attack regarding this accusation. While some say manipulation in the bitcoin ecosystem is the worse, Pierre Rochard, a software engineer and the founder of Bitcoin Advisory, is of the view that manipulation in the XRP ecosystem is hundred times worse as compared to bitcoin.
While replying to the remarks made by a proponent of XRP, who stated that bitcoin is largely manipulated by some big whales in the market, Pierre tweeted that:
“however BTC today is nothing but a mechanism for manipulation by whales”
This is the most bizarre criticism of BTC imaginable coming from an XRP proponent. https://t.co/sCbgBWoqC8
— Pierre Rochard (@pierre_rochard) August 29, 2018
Although this claim made by the proponent of XRP might just be valid as bitcoin is prone to manipulation. After further inquiry made by BlockPublisher regarding manipulation of the bitcoin ecosystem which is present on some scale in its ecosystem, Pierre Rochard stated that:
Yes, it is, it’s just 100x worse in XRP
Manipulation has been one of the serious concerns regarding the crypto market raised by different regulatory bodies and institutional investors. It is also one of the reason due to which an exchange-traded fund (ETF) for bitcoin is not getting approved by the U.S. regulatory body, United Stated Securities and Exchange Commission (SEC). In the rejection presented forward to the ETF proposal put forward by Winklevoss twins, which was also backed by Bats BZX, the regulatory body stated that:
Although the Commission is disapproving this proposed rule change, the Commission emphasizes that its disapproval does not rest on an evaluation of whether bitcoin or blockchain technology more generally has utility or value as an innovation or an investment. Rather, the Commission is disapproving this proposed rule change because as discussed in detail below, BZX has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of the Exchange Act Section 6(b)(5), in particular the requirement that its rules be designed to prevent fraudulent and manipulative acts and practices.
In a nutshell, it can be concluded from the remarks made by both the parties that manipulation is certainly present in the crypto space, whether less or more. There is presence of certain factors that manipulate the prices of digital currencies and the decentralized blockchain-based crypto network is not as “fool proof” as one think.