XRP Crashes and Ethereum Takes Second Lead
XRP, Ripple Labs’ native cryptocurrency, has continued on its dropping path, essentially switching positions with Ethereum. The switch in spots has not come as a result of an increased total market cap by ETH but instead, Ethereum has also been dropping and plummeting to lows that have not occurred since last year, resulting in most of its yearly gains lost.
To better explain the drop in prices, Bitcoin has plummeted 70 percent from its peak and Ripple has dropped an additional 20, plummeting around 90 percent from its peak. Despite this, Ripple’s crash is a lot more significant as plans to list and trade on Coinbase have been canceled for obvious reasons. More so, a Californian lawsuit was recently dismissed by the court.
During the trial, Ryan Coffey, the plaintiff, stated that Ripple had cost him significant losses after utilizing misleading advertising events and as a result, provided misleading information regarding the role of XRP tokens. A filed motion was then dismissed by the court. In light of this, close criticism and down talk were among the main factors in the unfavorable outlook for XRP possessors. Following the coins rebranding, Ripple made it clearly evident that the coin was not intended on playing an important role in a few of the plans that the company had made as a means of acquiring seamless interbank transfers.
News of this was quickly picked up and investors have realized that hodling all their XRP may prove to be fruitless. XRP has not been classified as a security by the SEC and gives no true ownership rights in terms of Ripple’s environment. Due to Ripple’s network being able to facilitate transfers without the need of using Ripple coins, XRP provides no future use. This all comes down to the creation of XRP as an advertisement coin.
As more down-look hit XRP, the coin has dropped to around $0.30 in value, a 28 percent drop over the last week. Trading also dropped to around $196M in terms of volume. Additionally, BTC and USD fell in price as a result. The coin has dropped heavily since its last peak, crashing around 91 percent in price and is currently among the worst performing cryptocurrencies and the $5 price goal seems to be impossible.