The Ripple effect
On September 18th, Ripple (XRP) was stagnating around $0.27. Nothing interesting had been happening on the XRP charts. And then, out of the blue, an amazing rally started. In just 4 days its value was 2.5x higher when it reached $0.69. Since then, there has been some correction but Ripple’s price is still twice as high as it was two and a half weeks ago.
In other areas of the crypto market nothing similarly outstanding has been happening, so most of the attention and spotlight is now on Ripple.
XRP’s rally not yet over, it seems. Critics are saying it’s a pump&dump and they are warning us to be careful. Is there manipulation carried out by whales in the background? No one knows. But Ripple managed to get everybody’s attention. XRP investors are calculating possible year-end harvest, hoping that Ripple continues to soar.
There have been a lot of talks about large financial institutions considering Ripple as a solution for faster and cheaper transactions. These financial institutions could choose other crypto-currencies like Stellar (XLM). The reason they are voting for XRP is obvious: most crypto-currencies want to put the banks out of business, however Ripple’s mission is to empower banks. So, if banks want to put up a fight against the crypto sphere and at the same time they want to keep up with the next generation financial technologies, building on Ripple is the best decision.
Cryptodaily.co.uk has looked at the background of this situation: “Those of us who have been around for long might have noticed by now that this is not the first time Ripple (XRP) has made its own moves. In the past, there have been debates regarding how Ripple (XRP) might decouple from Bitcoin (BTC)’s dominance. It only makes sense because the crypto community has not treated Ripple (XRP) the same as other coins. For instance, Coinbase has not listed Ripple (XRP) so far despite a strong interest. Ripple (XRP) investors were especially outraged when Coinbase listed Ethereum Classic (ETC) instead of Ripple (XRP). It is clear that they have no plans of listing Ripple (XRP) in future either. On another occasion, Coinmarketcap /…/ without an announcement, /…/ delisted a currency pair for Ripple (XRP) which gave investors a false impression that the value of XRP/USD had fallen sharply.”
It became obvious soon that Coinmarketcap’s stunt was carried out on purpose to harm Ripple. XRP investors were considering suing Coinmarketcap for their unfair move. But, since there were no specific regulations against manipulative actions like that, nothing could be done legally. But what the point here is is that the crypto community doesn’t seem to have accepted Ripple as an equal crypto-currency. As Cryptodaily.co.uk concludes its analysis: “Ripple (XRP) does not have very favorable prospects staying in Bitcoin (BTC)’s shadow but that could change soon if Ripple (XRP) decouples from Bitcoin (BTC).”
How will that affect the situation between the crypto sphere and the world of traditional finance? We are keeping our eyes on the developments…