The XRP community is raising alarm bells about how keeping the cryptocurrency on centralized exchanges can negatively impact its price. Expert Pumpius shares advice for investors.
Impact of Centralized Exchanges on XRP Prices
Expert Pumpius warns investors that storing XRP on centralized exchanges may unknowingly contribute to price suppression. Exchanges play a crucial role in managing volume and liquidity, potentially leading to artificially low prices for XRP.
Benefits of Self-Custody Solutions
Investors are encouraged to move their XRP into self-custody wallets like Xaman, Tangem, or Ledger. Reducing the supply of XRP on centralized exchanges could help create scarcity and support more organic price increases. Leaving assets in the hands of third parties poses risks such as sudden account freezes or withdrawal restrictions.
Promotion of Decentralization Ideas Among XRP Holders
Pumpius noted that failing to use personal wallets could result in XRP being used as exit liquidity by larger investors, which may pose a threat to retail holders during periods of market instability. There is a growing support in the community for decentralized storage of assets as a safer and more empowering option.
As discussions about manipulation and risks in the crypto space intensify, XRP holders are being urged to take proactive steps in moving their assets to self-custody solutions. This could not only safeguard their holdings but also influence the token's true market value.
