The reason why Ripple went into the red again before bouncing today - Global Coin Report
Connect with us

Altcoins

The reason why Ripple went into the red again before bouncing today

Published

on

Ripple
READ LATER - DOWNLOAD THIS POST AS PDF

The cryptocurrency market is at that time when things are going sluggishly, again. Not much to complain concerning the recent market crash after a little surprise earlier, the market hasn’t been at its best; this means that a token sell-off by any digital asset might have some detrimental effects. That is probably what is going on with Ripple (XRP) at the moment even though it recently experienced a sharp price surge and remains in the third position considering the market capitalization.

Ripple has profited from the XRP’s value over time and from various projects which includes Xpring. It has also made many profits by investing in other businesses. One of the co-founders of Ripple, Jed McCaleb, who also started the cryptocurrency exchange known as Mt.Gox, and Stellar (XLM), has decided to accelerate the sales of XRP tokens he holds.

It is important to know that McCaleb left Ripple a few years back to start his very own blockchain platform. However, he has been selling XRP tokens for quite some time but has just decided to increase the sale of his XRP tokens now. The announcement has added more pressure on Ripple even after it experienced more than a 70% plunge this year alone.

McCaleb’s sell-off is not good news for Ripple’s XRP investors. Let’s recall that Ripple still is a start-up company; thus, a sudden sell-off could make the company face severe difficulties.

XRP is one of Ripple’s product, and it is worth $29 billion currently (the total market cap); not to forget that the token attained a worth of $118 billion in the past. XRP’s value has decreased as a result of the market plunge this year.

Despite getting crushed throughout this year, the cryptocurrency experienced a huge surge about five days ago but only to slow down again as it lost about 15% of its value in the last 48 hours again before going up just now after the announcement by Coinbase that they will be listing new cryptocurrencies. Many are speculating that the rapid sell-off of XRP tokens by McCaleb has caused the Ripple token price to go down sharply again.

On the other hand, McCaleb stated this through an email:

I’m not selling more than I have agreed to with Ripple.”

That was the only statement of McCaleb, and he has refused to say anything further.

Daily Market Capitalization

In 2012, Ripple was created with the sole aim of providing the best solution for cross-border payments. The blockchain start-up raised more than $90 billion through venture capital companies such as Andreessen Horowitz, RRE Ventures and Founders Fund at the beginning of the year – besides the $60 Billion XRP tokens at hand.

In 2016, McCaleb signed a deal with Ripple, but the deal is tied to daily capitalization which is based on a certain percentage of the average daily volume of XRP which was reviewed to make sure the market was orderly. After the deal was struck, McCaleb and his family owned about 5.3 billion tokens, which includes two billion donor-advised funds.

Even though McCaleb possessed 7.3% of the tokens, he sold just a little part of it – about 0.75% capitalization. Now, this is McCaleb’s third year of selling XRP tokens. It is necessary to know that by August, his sales grew. He started selling 499, 312 XRP daily. And now, at one point in a week this month, McCaleb sales increased to more than $100,000.

As per the Wall Street Journal publication,

average daily trading volume of XRP on the Ripple consensus ledger… hasn’t changed considerably in recent months and not enough to account for the change in his daily sales.”

In a response online, Ripple has refuted the assertions, further emphasizing that its former co-founder does not have a direct influence over his XRP tokens which are being held under the “custody account” with the agreement signed in 2014, by both parties.

But seeing the sudden fall in Ripple right after the McCaleb XRP sell-off news spreading in the market, many started questioning that it could be the reasons behind recent Ripple crash. At the time of press, the cryptocurrency trades in green again, thanks to today’s Coinbase announcement. As it looks, the coin wants the number two spot back. Let’s see how high Ripple surges this time.

For the latest cryptocurrency news, join our Telegram!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. The author is long Bitcoin. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Photo by Joshua Rawson-Harris on Unsplash

Altcoins

Lotto Nation is Revolutionizing the Traditional Lottery Industry

Published

on

Lotto Nation
READ LATER - DOWNLOAD THIS POST AS PDF

As the global economy continues to deal with the economic fallout due to the ongoing pandemic, companies are coming to terms with the fact that normalcy may not return for quite a while.  Many economists are wondering how the business landscape will look a year or more from now.  It’s certainly possible that many businesses, such as retailers and restaurants, may be unable to survive the current downturn.  But while some businesses will falter, others will emerge stronger than ever.

Traditionally, when economies go through a severe downturn, companies adapt.  Those that maintain the status quo usually have great difficulty while those that adapt prosper and conquer.  One possible example of this is Lotto Nation.  Thanks to the entrepreneurial skills of Nils Thomson, the Founder and CEO of Lotto Nation, the company is attempting to completely modernize the traditional lottery industry.

Current Lottery Model is Severely Outdated

It’s safe to say that nearly every human that has ever walked the earth has fantasized about winning the massive jackpot that would completely change their life.  These dreams have turned the global lottery industry into a $302 billion market that is expected to reach $380 billion by 2025.  Despite this predicted growth, the industry suffers from a variety of problems that are preventing it from really exploding.

Perhaps the biggest problem is that traditional lotteries are centralized.  Because of…

Continue Reading

Altcoins

Aluna.Social is a Compelling Social Platform for Crypto Traders and Investors

Published

on

Aluna.Social
READ LATER - DOWNLOAD THIS POST AS PDF

When one thinks about the social media landscape, the companies that first come to mind are most likely Facebook, Instagram, LinkedIn, and Snapchat.  These platforms are a great way to stay connected with friends, families, and colleagues, especially when geographic distance is a factor.  But, in addition to just chatting about life in general and sharing pictures, social media can be used to bridge the information gap that exists within the investment community.

Over the last decade, many trading offices have been established in large cities all over the world which allow solo traders and investors to pay a monthly fee in exchange for a workspace.  The real benefit to trading in these offices is to participate in the free flow of trading ideas and information.  Proprietary trading is one of the most challenging careers to be successful at and the exchange of ideas is almost required in order to succeed.  Traders at hedge funds and investment banks work in teams so why shouldn’t remote traders?

While these trading offices are a great way to help bridge the information gap, Aluna.Social may provide an even better way, especially as it relates to cryptocurrency trading.

Mission Statement

Aluna.Social, founded by Alvin Lee and Henrique Matias, is a multi-exchange social trading terminal for crypto traders and investors.  The goal of the platform is to help newcomers shorten their learning curve,…

Continue Reading

Altcoins

CoinFlip Scores Big with BRD Wallet Partnership

Published

on

CoinFlip
READ LATER - DOWNLOAD THIS POST AS PDF

As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible.  While many crypto users are extremely tech oriented, a lot of those on the sidelines are not.  The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above.  In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country.  Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.

In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map.  Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells.  BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit.  The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.

Cryptocurrencies are already making a huge difference around the world.  Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies…

Continue Reading

Press Release