RIPPLE: WHY THE COURSE OF ITS CRYPTO CURRENCY EXPLOSES 100%?
RIPPLE: WHY THE COURSE OF ITS CRYPTO CURRENCY EXPLOSES 100%?
The cryptocurrency developed by the American company Ripple regain a strength it had not known since last year.
It has been a long time since the XRP, the cryptocurrency developed by the Californian start-up Ripple, had not made talk about it in positive terms. Its price increased by more than 100% between Thursday and Friday, bringing its weekly growth to 162% (follow its course live on our dedicated space). This significant performance is partly explained by the announcement on Monday of the launch of an application using the XRP, hinting that it could finally have a concrete use. "I am very confident that next month you will learn good news about this," said Sagar Sarbhai, who is in charge of Ripple's regulatory relations in Asia-Pacific and Middle East, CNBC. . No other element has filtered, but this was obviously enough for investors to jump on Ripple's cryptocurrency.
The XRP is the asset of the sector which recorded the best performance in 2017. It has risen by 36,000%, against "only" 1,400% for Bitcoin, before taking full swing the bursting of the bubble early 2018 From $ 3.55 in January, it dropped to $ 0.26 at the end of the summer. The XRP is currently trading around $ 0.46. The intense speculation around him is explained by the promise of Ripple. The company aims to revolutionize international interbank transfers by supplanting the archaic SWIFT system in effect since the 1970s. According to Ripple, its solution greatly reduces costs and saves time when sending funds abroad.
Ripple is indeed generating interest in the banking industry. More than 120 banks and financial institutions (Western Union, Santander, Crédit Agricole, etc.) are testing its blockchain transfer platform. On the other hand, it does not require the use of the XRP cryptocurrency (one can use traditional currencies) and no major institution uses it in real conditions. Thus, despite some attention, the XRP has never for the moment justified the excitement around him.
Unlike Bitcoin, the Ripple system is centralized. That is, the company has decisive authority over the protocol, while Bitcoin requires agreement from the majority of its network members to make it evolve. In addition, the company holds 60% of the outstanding XRP. According to a very detailed report published in January by the BitMEX trading platform, Ripple's solution would ultimately be little different from the traditional banking system.
