Not all cryptocurrencies are the same. Many of these alternative cryptocurrencies claim to offer investors ripple of change advanced technology than bitcoin’s blockchain and have benefitted from the cryptocurrency craze bitcoin created. But amid the broad cryptocurrency selloff in recent days, Ripple’s fall has been the most dramatic, more than doubling the losses of bitcoin. 70, according to the exchange bitstamp.
Alexander Kravets, a former Wall Street trader and creator of Xtrade. To understand why Ripple has fallen so much, you have to understand how it differs from bitcoin and other alt-coins. Unlike most cryptocurrencies, which play up their decentralized structure, Ripple’s founders decided to go the other way. They have created a currency that’s highly centralized, which means that the company — not individual investors — controls how much supply of XRP leaks out. The United States isn’t the only market riding the cryptocurrency craze. Because of the frenzy, many cryptocurrencies including XRP trade at higher prices on South Korean exchanges than in the U.
So much so that the crypto exchange Coinmarketcap. Korean exchanges from its price calculations. This disproportionately impacted Ripple sending the price of XRP instantly downward, according to Bloomberg. XRP’s rise over the past year had a lot to do with its client base. Unlike Bitcoin, which has great appeal to individual investors, Ripple has been favored by the business community. Over 100 financial institutions, like UBS, Santander, and the Royal Bank of Canada have used the Ripple platform, according to the company, to conduct trades internationally. That’s partly because of the speed with which Ripple’s ledger can process trades globally.
Bitcoin takes four hours to settle a transaction. Ripple CEO Brad Garlinghouse told Fortune earlier this year. But not all the transactions that banks make on the Ripple platform have to use the XRP tokens, as was pointed out by The New York Times. Instead, banks could use dollars, euros, or another local currency on the Ripple platform, circumventing the alt-coin. In other words, as investors come to realize that Ripple the company does not need XRP the token to soar in price to be successful, investors may further cool to XRP. Money may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
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We believe the biggest ripples you create occur when you impact the lives of others. Over 650 million people live without access to safe water. Together with improved hygiene, these basic human rights underpin health, education and livelihoods, forming the first essential step in overcoming poverty. We had some good times didn’t we? Unfortunately, all good things must eventually end. We decided to close down the old site as it was no longer viable in its current form. Ripple was started by a small group of friends with a passion to harness the power of the internet to drive change and raise funds for community aid.