XRP Is The Worst Performing Major Crypto of 2019 (GotBitcoin?)
ByCCN.com: Ripple’s XRP is having a disastrous start to 2019. In a year when bitcoin is storming back towards bull territory, XRP has crashed 16 percent. The third-largest cryptocurrency is now the worst-performing digital asset in the top ten. XRP Is The Worst Performing Major Crypto of 2019 (GotBitcoin?)
Ripple’s woes worsened in yesterday’s trading session as XRP’s value dropped 7 percent, plunging below the key $0.30 mark. XRP is consistently underperforming bitcoin and the broader cryptocurrency market.
Other cryptocurrencies have performed even better. Litecoin has chalked up 135 percent gains since January while EOS is up 82 percent. Crypto’s enormous 2019 success story, Binance Coin (BNB), has surged 283 percent.
XRP, however, has failed to join its peers in the epic crypto comeback. At $0.29, the cryptocurrency associated with Ripple remains stuck 92 percent below its all-time high of $3.84.
Problems At Ripple?
The lack of price action behind XRP likely lies with Ripple. The company aims to provide international remittance technology to major banks and payment providers. But despite teasing hundreds of banking partnerships, only a tiny handful are actively using the XRP token for liquidity.
Ripple CEO Brad Garlinghouse once boasted that “dozens” of banks would be using Ripple’s xRapid service, which taps XRP as a bridge currency, by the end of 2019. Thus far, onlyone licensed bank is using xRapid. Other clients are localized payment providers.
Simply put, xRapid and XRP liquidity is not yet the game-changer Ripple claimed it would be. Traders are coming back down to Earth after exaggerated claims.
Pressure From JP Morgan’s JPMCoin And Facebook Coin?
Ripple’s unique selling point has been weakened by the entrance of JP Morgan and Facebook in the cryptocurrency arena.
The industry mocked JP Morgan’s controversial new cryptocurrency JPM Coin when it was revealed this year,including Ripple’s CEO. But JPM Coin has likely played a part in choking XRP’s price action.
Why? Because JPM Coin threatens to do what XRP does. JPM Coin is designed to make bank transfers faster and cheaper. It could one day be used for inter-bank remittance payments, too.
At the same time, Facebook revealed plans for a cryptocurrency that would facilitateremittance payments in India. Indian remittance payments is one of Ripple’s most important markets.
In other words, Ripple and XRP just got some huge, well-established competitors.
Ripple’s Ongoing lawsuits And “Security” Confusion
Ripple is also battling aclass action lawsuitover its relationship with XRP. Ripple maintains that it did not create XRP, nor does it have any direct connection with the cryptocurrency. But legal documentsbeg to differ.
As a result of Ripple’s close ties to XRP, many argue it should be classified as a security. The Securities and Exchange Commission (SEC) is still quiet on this issue. The confusion around XRP’s classification is likely making some investors wary of the asset.
For now, XRP lags the broader crypto market.
Ripple CEO: We Can’t Control XRP Price Any More Than Bitcoin Whales
The CEO of blockchain payment network Ripple says the company does not want to “dump” its associated XRP cryptocurrency despite selling huge amounts of it.
In an interview with CNN on Jan. 5, Brad Garlinghouse added fresh contention to the debate about Ripple’s relationship to XRP, which has gained 10% in the past 24 hours.
Garlinghouse: Ripple “Can’t Control XRP Price”
“In the XRP community, Ripple is the largest owner, and the point I have made is we’re the most interested party in the success of the XRP ecosystem,” he told the network.
On The Topic Of How Ripple Manages That Ownership, Garlinghouse Stated:
“Yes, Ripple owns a lot of XRP, we’re very interested in the success of XRP, but the accusations of us dumping, that’s not in our best interests to do that […]. We would never do that and in fact, we’ve taken steps to lock up most of the XRP we own in escrows so we can’t touch it.”
The comments jar with Ripple’s own market moves in 2019 and before. As Cointelegraph reported, the company has long been selling off XRP in bulk, with last year seeing it rid itself of more tokens than ever.
At the start of 2020, the company released 1 billion XRP, worth around $200,000, from escrow as part of a planned operation.
XRP itself meanwhile hit more than two-year lows in December, dropping below $0.20 and at one point trading 96% below its all-time high of $3.40. A recovery, including 9% gains in the past 24 hours, has since sent XRP/USD back above the $0.20 barrier.
Garlinghouse continued to surprise. Despite Ripple’s token share, he strongly denied the company could influence the XRP price.
“Oh no,” he protested when asked about the possibility, likening the situation to major Bitcoin (BTC) investors:
“Ripple can’t control the price of XRP any more than the whales can control the price of Bitcoin.”
Large XRP buyers would “hypothetically have restrictions”
Nonetheless, he said, Ripple would not respond well to other major investors owning a significant share of the XRP supply. In what appeared as a wish to nevertheless influence the market, Garlinghouse positioned Ripple as the enduring major token holder going forward.
“There are times when we work with institutional investors or might say, ‘Hey, we want to buy $10 million of XRP,’ and we would have lock-ups to prevent them from dumping on the market,” he continued.
Concluding, the executive said that such interventions were nonetheless “hypothetical:”
“We don’t want some other party buying a whole lot of XRP and dumping it on the market, and so we would hypothetically have restrictions about what they could sell and how often, and usually those are based on volume in the market.”
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