This week has been a rough one for Ripple XRP. While the entire world was getting hyped and buying XRP tokens, Ripple took a nose dive and dropped to $1.75. This is quite shocking since Ripple XRP hit an all-time high of $3.84 and it was expected to keep growing.
This is another example of how volatile the cryptocurrency market can be. Nonetheless, let’s see why everyone is hyped about Ripple XRP and why its going on a downhill.
Partnering with Banks
The reason why Ripple XRP is being held in such a high regard is because it takes a different route than most cryptocurrencies. Unlike Bitcoin and Ethereum, Ripple XRP has been designed to partner with banks. The cryptocurrency is already teamed up with a bunch of banks that spread from London to Mumbai and the list of partners is surely going to get bigger as time goes on.
Seeing how everyone is interested in Ripple XRP, no one expected it to crash as it did. Joe DiPasquale who is the CEO of cryptocurrency fund of hedge funds BitBull Capital decided to shed some light on this matter and explain to everyone why Ripple XRP’s value drop so low.
This is what Joe DiPasquale had to say about Ripple XRP’s downfall: “Its price initially spiked because sentiment was high; there were rumors of additional deals with big banks and its token, XRP, being listed on Coinbase. When those didn’t materialize, sentiment turned, and investors started dumping after it hit $3”.
From the looks of it, Joe DiPasquale is implying that the big stock investors who purchased millions of XRP tokens were just looking to turn a profit and didn’t care about Ripple XRP’s future.
Considering that Ripple XPR grew by more than 30,000% in 2017, we think its safe to say that those investors turned a great profit if they bought at the right time.