Does Ripple’s Coin XRP Have Fake Liquidity on Cryptocurrency Exchanges?
XRP is the second largest cryptocurrency in the market after Bitcoin (BTC). This digital asset is trying to reach new financial institutions and companies around the world to perform cross-border transactions. In the future, this digital asset could challenge Bitcoin’s dominance in the market.
This digital asset has experienced an increased trading volume in different exchanges from all over the world. According to CoinMarketCap XRP had a trading volume of $400 million in the last 24 hours. Nevertheless, coinmarketbook.cc proved that part of this liquidity is false.
This website provides information about the real liquidity on major exchanges. The website provides information about the buy orders at 10% distance from the highest bid price. This is calculated by summing buy orders close to bidding price and converting the amount into US Dollars.
This allows the market to have a better idea of what the trading volume of a specific coin is, avoiding manipulation by big whales and market makers. According to this indicator, there are $138 million ready to purchase Bitcoin, $26 million buying orders for Ethereum and just $13 million for XRP.
It is actually worse. If you disregard their dirty tricks, Ripple mcap is $33B!! Greatest Ponzi scheme in history. Its fake liquidity (https://t.co/lo57wCCe0x) is bearly greater than Litecoin's (~6% its market cap). I'd love to have long term options available to short it…
— Fernando Nieto (@fnietom) January 20, 2019
There are several XRP supporters that are very bullish about the future of the digital assets. This virtual currency could be used by banks and financial institutions to process cross-border payments, reduce costs and improve the services offered to customers.
However, a few days ago, a video spread on social media regarding crypto enthusiasts asking a few companies that were apparently working with the XRP cryptocurrency but informed that they were not using the digital asset. Nevertheless, this is not a conclusive video and much more investigation must be performed to say that there are no firms using XRP.
Ripple currently has more than 200 companies working within its network called RippleNet, and others are already working with the xRapid solution that uses XRP as an asset to process transactions.
At the time of writing this article, XRP is being traded around $0.318 and it has a market capitalization of $13.06 billion.