Ripple’s crypto-token, XRP, is presently under pressure amid record selling seen lately in the cryptoverse.
At the time of writing this report, XRP traded at $0.451407 with a daily trading volume of $9.269 billion. XRP is down 9.77% for the day. It’s presently the third most valuable crypto with a market value of $20.5 billion.
What this means: Many crypto experts predict that global investors are cashing out big time amid the allure of free Spark tokens, causing investors to buy initially at record numbers. This has led XRP to gain over 150% within a few weeks.
Nairametrics anticipates that prevailing selling pressures seen lately might persist if it breaks below its critical support level of $0.45.
What you must know: XRP was designed by Ripple mainly to perform speedy, less costly, and more scalable alternative transactions for both crypto assets and existing monetary payment platforms like SWIFT.
- Ripple owns more than half of the total supply of XRP. In late 2017, the company vowed not to sell all of its tokens (XRP) at once, keeping up to 55 billion XRP in protected escrow accounts.
- Ripple (XRP) plays a dual role as a payment platform and a currency. The platform is an open-source platform that is created to allow quick and cheap transactions.
Meanwhile, Ripple’s CTO, David Schwartz, has reaffirmed that the company can be forced by an overwhelming number of market participants to upgrade its processes, regardless of if it agrees with the decision or not. This is due to its strong democratic principles and in response to critics who accused it of often manipulating the process as regards the liquidity and pricing of XRP. He said:
“There would be nothing Ripple could do to stop that from happening. Public blockchains are very democratic. If the majority wants rules to change, there is nothing the minority can do to stop them.”
Yes. There would be nothing Ripple could do to stop that from happening. Public blockchains are very democratic. If the majority wants a rules change, there is nothing the minority can do to stop them.
— David Schwartz (@JoelKatz) December 2, 2020