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

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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.

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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

Top 3 Coins to Buy Before They Go Big

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Crypto bulls are back, that much is clear. The long-lasting, harsh crypto winter is gone, and the new era in digital currency sector opens up some rather interesting opportunities. With many more bull runs expected to come in months ahead, a lot of coins are likely to blow up and maybe even hit new all-time highs, although that still remains purely theoretical.

On the other hand, the fact is that numerous coins are seeing prices that were not achieved since early 2018, and the overall momentum remains bullish. With that in mind, even if new records do not come for a very long time — chances are that many of the coins will blow up enough for investors to see some serious gains in months to come. As a result, investing in some of these coins now might be a very profitable decision, for those who have the patience to wait a few months. Here are some of the projects believed to have the greatest potential to go big in the second half of 2019 and beyond.

1. TRON (TRX)

Putting TRON on the list should not really surprise anyone, as the project constantly comes up with new project updates, partnerships, and alike. It also constantly breaks records, as is becoming one of the biggest players in the dApp and smart contract development sector.

In the past few…

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Altcoins

TRON (TRX) Is Likely to Go Big in June

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We are now halfway through 2019, and the situation in the crypto space is better than ever in the past year. Numerous cryptos are seeing large gains, often cut by brief periods of stagnation or small corrections, but the overall sentiment is obviously bullish.

Bitcoin sits way above the $8k mark, and while it struggles to go beyond $8,700, it is still trying to grow. Investors and analysts are quite bullish regarding the foreseeable future, and a lot of altcoins are expected to follow BTC in this regard. However, today, we would like to talk about one particular altcoin — TRON (TRX) — as well as why it is likely to go big in June.

TRON’s progress so far

As many people in and out of TRON community know, TRX is not a project that often sits still. It is rich with announcements, particularly when it comes to his CEO, Justin Sun, whose enthusiastic tweets often seem like hype building to many.

However, TRON made some massive progress in 2018, which was the worst year cryptocurrencies have ever seen. This is not something that can be achieved through hype alone, and the project needs to have true quality and value in order to see such massive development in the middle of the longest and harshest crypto winter in…

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Altcoins

IOTA (MIOTA) Pending Update Might Bring Huge Gains in Days to Come

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The crypto space is erupting once again, and if popular predictions are correct — the growth is only starting. However, in the vast sea of altcoins that hold the massive potential to go big in the future, we would like to set IOTA aside as one of the coins that might blow up quite soon.

As always, there are no guarantees of this, as the crypto space still lacks regulations, and remains highly volatile. To see proof of this, all you need to do is look at Bitcoin, which goes up by $1,000 within a day, only to slowly drop by $700 in the following week, and then repeat the process. In other words, there is still a lot of uncertainty regarding any project, and that includes IOTA.

However, even with all of that in mind, many are quite optimistic about this particular project, especially after a recent announcement. The announcement in question indicates that IOTA is about to see a massive upgrade. In most cases, this would be more than enough of a reason to expect the coin to start performing better. But, in IOTA’s case, this is nearly a guarantee that it will.

The update is believed to carry a lot of fixes for a lot of problems that traders and investors have been reporting for a while. No crypto is perfect, and since IOTA is…

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