Xrp Price Catalysts
Ripple’s XRP token has dropped significantly since its all-time high of $3.84 that it reached in January, to its current value of $0.45 (CoinMarketCap).
However, it should be noted that the crypto market as a whole, has seen a significant decrease since January 2018.
The significant downturn of the crypto market as a whole cannot be simply explained due to a single event. A number of factors over the last few months has led to the current situation.
Who is XRP?
XRP is a token created by the company Ripple. XRP is designed to be a decentralised digital asset and be used to settle payments in only a few seconds.
It is considered to be much faster than Bitcoin and handle more than 1,500 transactions per second, plus it can be scaled to handle even more.
XRP has considerably less transaction cost for standard transaction compared to Bitcoin.
XRP is the token currency of the Ripple network.
Unlike bitcoin, which is mineable, XRP was created and there are a total of 100 billion XRP tokens.
Here are four things that could greatly effect the price of XRP:
- SEC declaration of its legal status
- Listing on coinbase
- Development and use of xRapid
- XRP used by SBI Holdings
SEC declaration of its legal status
The debated over whether XRP is or isn’t a security has been going on for a while and having a knock-on effect on the price.
There have been a number of lawsuits accusing against Ripple for creating XRP as a security.
To clarify the confusion revolving around the question of whether XRP is a security, Brad Garlinghouse explained that XRP cannot in any way represent a security, explaining how XRP would still exist on the xRapid network even in the case Ripple foundation seizes to exist.
Although the lawsuits are claiming that XRP was made as a security, the final decision on the matter of whether XRP is a security or not rest on the decision of SEC.
The SEC decision could make or break XRP. A positive veridic could rocket the price of XRP while a negative veridic will most certainly be disastrous to the value of XRP.
Ripple CEO: It's very clear XRP is not a security
Listing on Coinbase
Coinbase, the largest cryptocurrency exchange in the U.S has recently announced that they are considering adding five new tokens on to its platform.
The five digital coins include Cardano, basic attention token, stellar lumens, Zcash, and Ox.
After months of speculations and rumours, we still have no clear picture on whether XRP will be listed on Coinbase. Chances are that Coinbase will most likely stay off XRP until the SEC makes a decision about it.
However, some also believe XRP may not need Coinbase, as technologies like xRapid take off.
Development and use of xRapid
xRapid uses XRP as a source of instant liquidity and a way to cheapen and quicken the fiat transaction
Brad Garlinghouse, Ripple’s (XRP) CEO explained in an interview to CNBC that by the end of 2019, he expects many large institutions to be using it.
“I’ve publicly stated that by the end of this year I have every confidence that major banks will use XRapid as a liquidity tool,” Garlinghouse told CNBC in an interview.
The XRP token is publicly traded on cryptocurrency exchanges. If large institutions begin using the xRapid product, demand for XRP would theoretically rise given the large-scale transactions what would be taking place, increasing the price.
XRP being used by SBI Holdings
SBI will be launching a new cryptocurrency exchange, which will focus entirely on XRP. This is because the parent company of SBI Holdings has been a partner of Ripple for a number of years. Its CEO, Yoshitaka Kitao, has been quoted as being bullish on the price of XRP, predicting a price of $10.
Ripple's XRP token has a lot of potentials. Once the SEC decision is made, I believe it will most certainly rocket in price. The decision will most certainly attract new investors, as well as strengthening the belief of the current holders. A positive SEC decision could also lead to be listing on Coinbase.
However, the same can't be said if the SEC give a negative decision and classify XRP as a security, leading prices to plummet.
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© 2018 Deniz Burunlu