Oh, and the effect on price would be to depress it.

Virtually it is a way to bypass the current limit of maximum coins.  For example 17mm XMR becomes virtual 51mm XMR, or 21mm BTC is suddenly 42mm.

Now each unit of crypto is worth a fraction of what it would be worth were there not the phantom copies floating around.

I will say this... Satoshi put so much power in the hands of users that every time (so far) someone has tried to control Bitcoin they have been ruined in the end.  We are watching this happen with the BCH  drama as it unfolds.

I believe the banks will face this same fate when they try to take control.  Does not mean they will not cause us problems in the meantime though.