Grapedrop has been tracking suspicious activity in the blockchain space since the verification tool was launched in July.
Large XRP movements between exchanges could inflate trading volumes through wash trading.
Previous analysts have questioned XRP price behavior during major market events.
The operator of the XRP Ledger validations expressed concerns about potential price manipulation, following the detection of suspicious activity on the blockchain since launching its verification node.
#اخبار_الكريبتو_العاجلة #اقتصاد_رقمي #كريبتو_المجانين $BNB $XRP
Grapedrop, which operates one of the active XRP verifiers, among 150 to 170, monitors immediate transactions believed to indicate coordinated efforts to manipulate the market.
The verifier pointed out that although there are around 1000 nodes worldwide on the XRPL network, only a subset actively participates in validating transactions. This privileged access allows him to monitor large money movements between exchanges, which could affect XRP prices in the market through artificial inflation of trading volume.
Concerns about unregulated cryptocurrency trading
Grapedrop explained that cryptocurrency prices often rely on volume-weighted averages, making large transfers between exchanges a potential issue for market integrity.
If the same entities transfer large amounts of XRP between trading platforms, this practice, known as cryptocurrency trading, could artificially inflate reported trading volumes and distort price indicators.
This manipulation could generate false impressions of increased demand, driving algorithmic trading systems and altering overall market sentiment. In markets with limited liquidity, these coordinated movements could directly impact prices through artificial signals of scarcity or abundance.
The verifier confirmed that while traditional financing strictly prohibits money laundering trades, cryptocurrency markets lack consistent enforcement mechanisms. This regulatory gap allows for manipulation that could face strict penalties in traditional financial markets.
Challenges in analyzing transactions and alternative interpretations
However, large blockchain transactions do not necessarily indicate manipulation, according to market observers. Exchanges, market makers, and institutional participants regularly transfer large sums for legitimate operational purposes, including liquidity management, internal transfers, and account settlements.
Blockchain data analysis faces limitations in identifying wallet ownership or transaction motives without additional context. The absence of direct evidence linking these transfers to coordinated trading activities leaves room for legitimate interpretations instead of price manipulation schemes.
In the absence of comprehensive investigative tools or regulatory oversight, distinguishing between normal trading activities and potential market manipulation remains challenging for investigators and analysts monitoring blockchain activity.
Grapedrop's notes are adding to the ongoing discussions about XRP price behavior, which have lasted for years. Market commentator WallStreetBulls claimed in October 2023 that wealthy entities have actively suppressed XRP prices when the token's trading price was around $0.48.
