2019-6-1 20:40 |
Ripple’s XRP is still recording prices below $1 despite being the third largest altcoin in the crypto market. We can see a whole variety of Altcoins surprising investors thanks to the amazing runs they are making, while XRP’s price just seems to keep its stability, not even reaching the $0.50 mark.
The interest in Revolutionizing the Banking SectorRipple Developers always explained that their main objective is to revolutionize the banking sector. Something that proves to be sailing in the right direction. News about financial institutions and banks with interest in using Ripple’s services are coming up on a regular basis.
But, there is a catch here: The banks and big institutions, with the interest of using XRP for liquidity, make the purchases through the OTC market (Over the Counter), keeping the major exchanges aside, where the supply-demand rule is the one making the prices.
This way of negotiation also keeps aside some of the products and services that Ripple has to offer, such as xCurrent and xVia, that or not being used at all when this kind of transactions are initiated.
Although this can’t be seen as something unethical, we also need to take a look at the Bigger Picture:
The contracts that Ripple make with its partners prevent them from purchasing XRP on the open market, true. But, these partners, most probably would not have bought any XRP at all on the open market or OTC if the contracts did not exist.
The interest of most of these Institutions is to use the xRapid technology that Ripple has to offer, they don’t make their purchases as a speculative investment.
Ripple’s Price OverviewOn a YTD overview, most can be smirking about Ripple’s XRP progress. Although if we make a more in-depth study and go back to May 2017, this can start to look more like a trend than anything else.
On the 4th of May 2017, XRP was priced at $0.08. By the end of the month, it grew to $0.27 and kept going up until closing the year at $2.50. Sadly the momentum was only kept until Jan 4, 2018, when it reached the $3.65 ATH mark.
After that, the roller coaster took the downwards direction until now, when XRP has been recording prices between the $0.29 – $0.4 price levels.
Investors SentimentThe investors don’t seem to feel like giving up on XRP and they still believe its price will skyrocket to a new all-time high in the future.
They actually have strong points on their side, since there are even discussions on why Ripple is a firm to be trusted.
If this was a company that the only intent was to get rich and retire after a couple of years, they would just approach their partners to help them make the famous ‘pump and dump’. All of them would make millions or even billions of dollars, end of the story.
But since none of this happened, we can truly believe that Ripple’s main aim is to foster blockchain adoption and replace major financial institutions like SWIFT.
The post Are Contracts Between Financial Institutions and Ripple Responsible For Holding XRP Below $1? appeared first on ZyCrypto.
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