XRP Price Plunges Again; Down 93% from Record High
Ripple’s XRP fell on Tuesday to its lowest level of the year, highlighting collective panic in the cryptocurrency market following last week’s non-decision by the SEC concerning a highly touted bitcoin ETF. Although XRP’s losses aren’t unique, the so-called banker’s cryptocurrency is among the biggest losers in the top-ten.
XRP/USD Price Update
The XRP price fell 13.4% on Tuesday to a new yearly low of $0.262, according to CoinMarketCap. The decline puts XRP back 36% over the past seven days and a whopping 93% from its record high of $3.75.
At present values, XRP has a total market capitalization of $10.3 billion. Bitcoin cash, the fourth largest cryptocurrency by market cap, now trails XRP by less than $2 billion.
XRP’s 24-hour trade volumes amounted to $304 million, with Bitbank processing nearly one-fifth of the turnover.
Market Searches for Direction
As Hacked previously reported, the recent selloff began last Tuesday when the U.S. Securities and Exchange Commission (SEC) delayed a ruling on a keenly awaited bitcoin exchange-traded fund (ETF). From there, the market meltdown intensified amid signs that initial coin offerings (ICOs) are cashing out. Ethereum, whose protocol is responsible for at least three-quarters of ICOs, has declined to 14-month lows as a result.
With respect to ICO liquidation, Matthew Newton of eToro summed up the situation:
“The crypto market seems to have hit panic mode, with prices falling significantly across the board. As we can see in the case of ethereum, investors seem to be increasing liquidations of their ICO holdings, with significant drops in price and increased volumes.”
XRP’s fate, at least in the short-term, is tied to these broader market forces.
Ripple’s Regulatory Scrutiny
Unlike some of its well-known peers, XRP has faced growing scrutiny from regulators over its potential security status – so much so that Ripple Labs appears to have hired a PR company to remove the term “Ripple XRP” from online sources.
Ripple Labs has made it clear that the San Francisco-based company is not synonymous with the XRP currency, and that ownership of XRP does not give investors a stake in Ripple Labs. This is consistent with Hacked’s previous reporting on the matter, which showed the vast majority of Ripple’s business partners have not adopted XRP. In other words, banks and clearing companies have experimented with Ripple’s technology without adopting XRP as a base or quote currency.
On Aug. 11, a California district court dismissed a remand request related to a lawsuit against Ripple Labs by an investor seeking damages over alleged price manipulation. Plaintiff Ryan Coffey, a former XRP investor, sought to keep the case in the state’s lower courts rather than have the final verdict decided by a Federal judge.
The court issued the following statement:
“Having read the papers filed by the parties and carefully considered their arguments and the relevant legal authority, and good cause appearing, the court hereby DENIES plaintiff’s motion.”
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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