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  • Date of publication: 31 August 2020
  • 2301
  • businessbuysale.com
  • Ripple became the second cryptocurrency in the world in terms of capitalization. What is the reason

    Synopsis

    In early 2018, Ripple confidently outperformed Ethereum by more than $ 40 billion in capitalization and became the second world's crypto currency at market value. In just one month, the price of Ripple has grown 15 times. And if we compare the growth rate

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Description

What could be the reason for such rapid growth - the real value of the crypto currency or, after all, banal market speculation? Let's take it apart in order.

The project Ripple was founded in the middle of 2000, when bitcoin was not in sight. Decentralized payment system was an unrecognized novelty for payment operators and banks, so its development was extremely slow, and popularity left much to be desired. While in 2011, the developers did not decide to upgrade the concept of the platform and redirect it to the crypto-currency channel.

So the project management set a goal to eliminate Swift and circumvent the monopoly of transnational transfers using its own XRP token.

At the same time, the platform does not use the usual blocking or mining - Ripple uses its own technology and is fully centralized crypto currency. This crypto currency can not be devalued in any way, since it is released in limited quantities.

Creating a protocol, the developers released exactly 100 billion coins, their smaller part is now in the turnover of users. The rest are distributed among the approximate persons, developers and are on the purse of the company itself.

For example, one of the founders of the platform and former CEO of Ripple Chris Larsen owns 5.19 billion XRP and 17% of the company - it is equivalent to almost $ 40 billion. Interestingly, due to the confident growth of the XRP course, Larsen took15 place in the top of the richest people America, overtaking Steve Ballmer - the former head of Microsoft.

In turnover, traders have only a third of all issued XRP coins. And in early December 2017, the project team said that it intends to freeze about 55 billion XRP tokens for "fair play" - as many traders feared that too many tokens would enter the market, and this could lead to a significant drop in the exchange rate.

The announcement was the first bell in the rise in the value of Ripple. Its rate increased by 13% per day, and the volume of trading on exchanges reached $ 700 million.

Then the rate of Ripple grew steadily, and by the end of December 2017 it reached $ 2.9 per token, which is 13 times more than two weeks before. Such a rapid leap allowed the Crypto-currency to enter the second place in terms of capitalization, to displace Ethereum and increase the daily trading volume from $ 300 million to $ 11 billion.

However, the rise of Ripple continues to cause a lot of questions among most traders and analysts. One of the reasons for the unrest is the possible artificial "pampa" price for the world's largest South Korean crypto exchange Bithumb.

Users paid attention to the strange behavior of the exchange: it does not give the opportunity to sell XRP for a price below a certain mark and automatically cancels such orders. And since Bithumb accounts for more than a quarter of the volume of Ripple trading, the exchange can easily influence the average price of the token on the market as a whole and not let it fall below a certain value.

On this occasion there are no comments from the Ripple team, nor from the exchange itself. And most of the outraged Bithumb users try to get rid of their coins at a favorable rate by all possible methods.

Moreover, some skeptics point out that Ripple is a private company engaged in the development of its technologies. The future development of the crypto currency actually depends exclusively on the decisions of the project team, and not on the whole community, as in the case of ether or bitcoin.

But, apparently, Ripple's "rally" is far from over, as in the near future it is forecasted the addition of Ripple to Coinbase - the largest US crypto exchange. And, according to many experts, this significant event should significantly accelerate the growth of the crypto currency - up to 500%.

At the time of writing, the Ripple course is $ 3.26 per coin. And according to the latest data: representatives of Coinbase said that it will not add new currency pairs. However, it's far from the fact that in the case of Ripple this can be regarded as the final decision.

 

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