Connect with us
ripple skyrockets ripple skyrockets

Cryptocurrencies

Bitcoin Investors Beware: Ripple/XRP Price Skyrockets

 3 min read / 

Bitcoin’s recent surge has dominated public attention the past few weeks;, however, on the 23rd of August, the XRP price also experienced a spike in value, raising its market cap to $11.2bn from $6.6bn the previous day. The cryptocurrency’s total capitalisation subsequently settled down before bumping up again on the 29th. It is holding steady around $8.4bn at the time of publication.

Three Reasons the XRP Price Increased

Firstly, Ripple (the company behind the cryptocurrency) is benefitting from XRP’s adoption amongst big banks who are taking advantage of its fast transaction speed and secure network. This allows for effective intra-bank trading as financial institutions are finally able to escape the limitations of the current outdated infrastructure. Ripple has also admitted that they have sold their currency to established banks at a discount to encourage them to become market makers and confer greater legitimacy to the project.

Secondly, Ripple recently met with a group of bankers, academics and industry influencers to both discuss the cryptocurrency’s future and encourage cooperation between China and the US when it comes to the development of digital currencies. Shortly after the news, XRP’s price enjoyed its second bump in value. This is hardly a surprise – as more respected individuals associate themselves with the project, the subsequent increase in credibility is matched by an increase in value. Ripple is unashamedly aware of this and is known for stimulating credibility to fuel XRP’s valuation. For instance, the company recently invited Anja Manuel (an official from the US State Department) to their board of directors to provide support for their upcoming expansion into China. As a further example, Ripple has announced they will be holding a mid-October event in Toronto and will feature guests like Sir Tim Berners-Lee and Dr Ben Bernanke. When you get the father of the World Wide Web and an ex-chairman of the Fed in the same room, people start to pay attention.

Thirdly, an enormous amount of XRP trading occurs in Korea. 40% of all global trading volume in the past few weeks occurred between XRP and KRW (South Korean Won), suggesting that sentiment in the Asian markets played a big part in the cryptocurrency’s price spike. This is supported by an overall hike in crypto prices last week after the jitters caused by North Korea’s recent missile launch pumped the value of altcoins before investors flipped the coins for a quick return.

Conclusion

If the past few weeks have shown us anything beyond the fact that predicting the value of cryptocurrencies is becoming increasingly complex, it’s that credibility should not be underestimated. While Bitcoin has always had the first mover advantage, the currency’s recent and potential forks may push investors to move their funds towards a more reliable cryptocurrency. Ripple will undoubtedly ensure that XRP is perfectly placed to fill that demand.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Cryptocurrencies

Crypto Carnage: Blood on the Dance Floor

 3 min read / 

crypto crash

It is said that ‘Blue Monday’, typically the third Monday of January, is the most depressing day of the year. This has, undoubtedly, been the case for cryptocurrency owners worldwide; from Monday onwards, almost all of the world’s major cryptocurrencies have seen a drastic slump in their prices.

Having reached the $14,000 mark last week, Monday onwards marked a severe fall in Bitcoin’s value. On Wednesday, the dubbed ‘king of cryptocurrencies’ dropped to below $10,000 for the first time since the end of November, before making a small recovery on Thursday. It stands at $11,500 at the time of writing, but the day is still young.

And Bitcoin has only been leading the way. At this point last week, the price of Ethereum, the second most valuable cryptocurrency, was approximately $1,200; a slump on Monday saw it fall to a low of $800 on Wednesday before pushing through the $1,000 threshold again, and reaching $1,030 a day later.

Ripple’s XRP also followed suit; the cryptocurrency has almost halved in value over the past week – from around the $2 mark to a low of $1.20 on Tuesday. Since then, it has marginally recovered in price, to $1.48 at the time of writing.

Monero, IOTA and Cardano were also impacted – since Monday, they have declined in price by 35%, 22% and 21%, respectively. Litecoin now sits at $195, down from $240 at the beginning of the week.

The crash occurred at a time of optimism and hope for cryptocurrency owners. Just earlier this week, US money transfer company MoneyGram announced a partnership with Ripple in the aim of streamlining money transfers. Yesterday also marked the expiration of the first Bitcoin futures contract that had been listed by the CBOE.

Still, China’s offensive rhetoric against Bitcoin and other cryptocurrencies in the last seven days is likely to have stoked fears amongst investors, causing a major sell-off. The country confirmed earlier this week that it was seeking to further clamp down on its restrictions against virtual currencies by eliminating cryptocurrency trading.

It has also recently announced plans to further restrict Bitcoin mining within the country. Recent statements coming from Chinese governmental circles could go as far as to suggest that China wants to eliminate cryptocurrencies outright: the People’s Bank of China (PBoC) vice governor, Pan Gongsheng, purportedly encouraged the state to introduce a total ban on cryptocurrencies.

China is by no means the only country to have espoused hostility toward cryptocurrencies. Russia also partially echoed China’s scepticism – President Vladimir Putin noted this week that “in broad terms, legislative regulation will be definitely required in future”.

South Korea’s unreceptive stance toward digital coins – it was reported earlier this week that its finance minister, Kim Dong-yeon, had stated that the government would be introducing measures to clamp down on the “irrational” cryptocurrency investment rage – may have also played a part in driving prices down.

Still, for every bear, there seems to be a bull. Time shall tell whether increasing restrictions on cryptocurrencies from different governments will further impinge on their price, or if they will find a way to adapt to the new obstacles and prove all those championing them (and making millions in the process) right.

Keep reading |  3 min read

Cryptocurrencies

UK Banks Shun Bitcoin

UK banks Bitcoin

No UK banks have partnered with cryptocurrency exchanges.

Editor’s Remarks: The lack of any relationships between UK banks and cryptocurrency exchanges means that UK investors currently have to move their money through a series of foreign exchange transactions and services before they can cash out their profits. As a result, they incur high fees and often the suspicion of their banks. This is contrary to many European banks, which have partnered with such exchanges. To an extent, this is because the UK retail banking sector is highly concentrated, whereas in Europe and the US the consumer has more options. The UK government is also due to release guidance on how cryptocurrency gains are to be taxed in the next few days.

Read more on Bitcoin:

Keep reading |  1 min read

Asia

Hacks on Cryptocurrency Exchanges Linked to North Korea

 1 min read / 

hacks

A report has linked a hacker group, responsible for targeting crypto-investors and exchanges, to the North Korean state.

The attacks took place against South-Korean crypto-exchanges and included attempts to harvest users’ passwords. The report does not say if the attacks were successful.

The report, by internet technology company, Recorded Future, has identified the attackers as the group Lazarus, known to be associated with the hermit kingdom. The malware was similar to that used against Sony Pictures in 2015, the WannaCry ransomware attack in 2017 as well as the Bangladeshi bank heist in 2016.

Attacks began when cryptocurrencies started to rapidly increase in value. It is believed North Korea favours attacks on cryptocurrency because they are not linked to any bank or government, making attempted heists less politically incendiary.

North Korea has shown a great interest in crypto-currency, potentially as a means for funding itself. In 2017, the elite Pyongyang university started to run courses on the virtual tender.

Keep reading |  1 min read

Trending

Send this to a friend