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Data shows XRP trades for $74 on the Atlantis exchange, where XRP recently secured a listing, but the legitimacy of the platform has become a subject of discussion.
Since slumping beneath $1 in December 2021, XRP has maintained a position below that mark. With market analysts predicting imminent price surges above $1 and possibly to a two-digit price, investors have indeed witnessed this phenomenon, albeit not in the expected fashion.
Interestingly, XRP has been recording prices way above its actual trading value on a centralized exchange known as Atlantis. This development came up shortly after the cryptocurrency exchange, which claims to be registered with the U.S. Treasury Department, decided to list the asset.
XRP Trades for $113, $80 and $74
A pseudonymous XRP community member first spotlighted the surprising phenomenon, pointing out that XRP trades for a 113 USD Balance (USDB). Being a stablecoin, USDB is pegged at a 1:1 ratio with the dollar, bringing the value of XRP to $113.
This right here is interesting
1 XRP is 113 USDB
1 USDB =1 USD
Hmmm. Anyone know or heard anything ? pic.twitter.com/pZDtP5zkip
— The ISO GOAT (@XrpKing09531420) March 19, 2024
Another XRP proponent called attention to the anomalous value shortly after WrathofKahneman (WOK), a prominent XRP community figure, echoed the development surrounding Atlantis’ recent support for XRP. The price had dropped from $113 to $80 at the time.
In response, WOK expressed doubt, but stressed that market participants would explore any arbitrage opportunities before long. An investigation from The Crypto Basic shows that the XRP price on the exchange has fallen further to $74.5.
For context, XRP’s actual market value is $0.5796. For XRP to reach the $74.5 price on Atlantis, it would need to rally by 12,753%. In addition, its market cap at this price would sit at $4 trillion, way above the entire crypto market valuation. This confirms that investors might not actually get XRP at this price on the exchange.
Moreover, the exchange also lists multiple assets at strange prices. For instance, Shiba Inu (SHIB) trades for $0.0028, 11,403% above its actual price of $0.00002433. Also, Bitcoin (BTC) changes hands at $166,000 on the exchange, representing a 168% increase from the real price of $61,757.
Red Flags Surrounding the Atlantis Exchange
While these values might present an arbitrage opportunity, it is ill-advised to seek to leverage it, as there is no guarantee that market participants would see enough liquidity on the platform to exchange their assets back to stablecoins. In addition, the legitimacy of the Atlantis exchange has been called into question.
Users have repeatedly reported an inability to withdraw their assets after depositing them into the platform. Some have also alleged that the system fails to recognize their login credentials shortly after they deposit cryptocurrencies into the platform.
The exchange itself says it is registered with the United Nations and the U.S. Treasury, but there is no evidence that supports these claims and no mainstream reports on such development. A quick look at its domain ancestry shows that the website is quite young, having been registered in July 2021.
Some XRP community members have suggested that others test out the arbitrage opportunity. However, The Crypto Basic cautions against this approach due to the multiple red flags surrounding the platform.