Shannon Thorp, a Treasury Management specialist at a prominent global bank, has opened up about the divided opinions within the XRP community.
Taking to her Twitter handle Thorp highlighted that while some rely on charts and trends linked to Bitcoin for short-term price predictions, others who believe in the utility of XRP anticipate partnerships to drive its price.
Crucially, she pointed out that XRP is not a security, challenging the logic of basing price predictions on “Securities” in the crypto space. Thorp suggested that clinging to such notions hinders the original mission set by the team at Ripple years ago.
She said, “I have been asked to give my price prediction – with no time frame, no clear understanding of circulating supply or firm dollar amount that equates to a start.”
When asked about her own price prediction, Thorp highlighted the uncertainty surrounding factors such as time frame, circulating supply, and specific dollar amounts. She referred to various recent developments, including the SEC vs. Ripple ruling, the FedNow announcement, and the proposed crypto regulation bill.
While providing her short-term price prediction, Thorp suggested a range between $100 and $500. She based this estimate on LS calculations, where higher prices provide ample room for growth and prevent single entities from monopolizing XRP for everyday operations. She also pointed out the problem with setting a price range for XRP, such as $1 to $5
However, she raises a hypothetical scenario where a large $750 million transaction is to be executed with an LS of $1. This would account for roughly 10% of all the XRP held by banks. Thorp argues that conducting such large transactions could be problematic, as it would require breaking down the $750 million into numerous smaller transactions (each having a burn rate), which might not be practical or desirable for parties involved.