XRP's price surges following positive news are often accompanied by rallies in tokens like ADA and XLM, attributed to high-frequency trading bots exploiting lightning-fast news reactions and priority API access on major exchanges.
These bots manipulate momentum using strategies like arbitrage and spoofing, creating an illusion of wider market surges across loosely connected assets.
Industry voices, including Vincent Van Code and Vandell of BlackSwan Capital, acknowledge the significant influence of bots, while investor Denver Ulland highlights the potential decrease in bot-driven volatility without strong institutional backing.
Suggestions for limiting bot-driven manipulation include regulating priority APIs and increasing transparency through decentralized platforms. Ripple's expansion of XRP's real-world utility could shift focus to organic demand and decrease automated distortion.