Altcoin XRP almost halved on February 1 – and traders lost $ 508 million over the course of a day.
Over the past day, the XRP token rate fell by 47%, to the current $ 0.38. Against this background, there were massive liquidations of traders' margin positions – they incurred losses of $ 508 million. Yesterday, February 1, the price of the coin exceeded $ 0.75 for the first time since November last year, after which a sharp decline began.
The future dynamics of the XRP rate largely depends on how the litigation between the XPR issuer, Ripple, and the US Securities and Exchange Commission (SEC) will develop, Coinspaid CEO Max Krupyshev explained. The SEC accuses the blockchain project of an unregistered sale of securities under the guise of $ 1.3 billion XRP tokens.
“Practice shows that such court cases in the United States have been considered for years, and there is no need to wait for a quick resolution of the situation. The risk of a protracted XRP correction is high. But it is possible that the founders of Ripple will quickly agree to the world, having bargained for favorable conditions in a couple of months. And after paying the fines, the project will continue to calmly develop further, especially since Ripple is backed not so much by retail investors as by financial institutions, banks and payment systems that have become Ripple's partners in recent years, ”Krupyshev emphasized.
He added that one should be extremely careful when entering XRP, since the coin has always been subject to “pumps” and “dumps” (edition: Pump & Dump – a scheme of artificially inflating quotes with the subsequent sale of an asset at a peak). For example, in January 2018, quotes rose above $ 3.7. Since then, altcoin has dropped 89%. The founder of the STASIS stable cryptocurrency platform, Grigory Klumov, called Ripple a "scam" (a fraudulent project that attracts investors' money with empty promises – editorial office) and "an extremely manipulative story."
“Ripple developed as a scam, was sold as a scam, and is now traded as a scam. I would not argue that his quotes were dispersed by traders from Reddit, rather, someone can do it, hiding behind traders from Reddit, "Klumov suggested.
Xena Financial Systems CEO Anton Kravchenko agreed that the wave of asset value growth that occurred before yesterday's decline (threefold growth in four days) was aimed at creating a wave of purchases, with the help of which large holders left the asset. For this reason, the value of the cryptocurrency plummeted on February 1.
“XPR is a complete story, about which it was initially clear that it was almost completely a fraudulent story,” concluded Kravchenko.
– Analyst Bloomberg Intelligence called Bitcoin a new version of gold