In a follow-up to her July 30th post, Shannon Thorp returned to X, the micro-blogging platform formerly known as Twitter, to provide additional insights into XRP’s future. It’s important to note that the views expressed are her own and do not represent those of her employer. Her initial post had stirred the crypto community by predicting an XRP price range of $100 to $500 in the near short term (4-7 months). On September 6, 2023, Thorpe shifted her focus to the qualitative aspects that could influence XRP’s value while clarifying and expanding on her earlier views.
Thorp began by challenging the prevailing belief that utility will be the main driver of XRP’s price. She presented a hypothetical scenario involving two banks, each using their own XRP. According to popular opinion, if one bank starts using XRP, it would engage in “utility,” thereby driving up the price. Thorpe argued that this model is flawed as it relies on external business efforts for growth. She emphasized that a higher XRP price would mean fewer tokens are needed for transactions, affecting Liquidity Strength (LS).
Going against the grain, Thorp stated that XRP’s creators never intended for the token’s value to be driven by external efforts or by everyday people buying the cryptocurrency. She also expressed skepticism about chart analysts, stating that their focus on Bitcoin’s volatility limits their ability to foresee a higher valuation for XRP. Thorpe rejected the notion that XRP’s value should be correlated with Bitcoin’s performance, emphasizing that Bitcoin lacks utility and is supported solely by retail investors.
Thorp then directed her audience to a Federal Reserve link, suggesting that global financial entities like the World Bank, IMF, and BIS play a crucial role in determining XRP’s value. She pointed out that Ripple has spoken to every one of these entities in some capacity. Citing a 2023 Ripple New Value report, Thorp revealed that a significant majority of global finance decision-makers believe that crypto and blockchain technologies will substantially impact business, finance, and society in the near future. The report also indicated that over half of these decision-makers are already in the process of implementing cryptocurrency solutions.
In her conclusion, Thorp reiterated that XRP’s value will neither be driven by utility nor be tied to Bitcoin’s success. Instead, it will be fundamentally linked to the needs of the global financial system. She posited that a sudden “flip of the switch” moment will occur, dramatically altering XRP’s value. However, she clarified that Ripple won’t initiate this change and emphasized that this is her own opinion based on her research. Thorp encouraged others to conduct their research.
Featured Image via Midjourney
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