Latest Ripple News: ‘Rotten Goods’ Comment Swirls, ‘XRP is a Glorified Paypal Alternative’ Sparks Fly
As new tokens keep popping up in the cryptocurrency industry, the debate over the securitization of Ripple’s XRP token keeps popping up.
Both Ripple and R3 are thriving tremendously with their new partnerships that take their brands around the world, but their XRP token is not quite as successful at the moment, as regulators focus on Bitcoin.
XRP has recently been receiving a lot of attention for their listing with Coinbase. Changpeng Zhao, the CEO of Binance, has commented that XRP is almost certainly not a security, he still says that a decision to securitize it would cause a widespread negative effect on the token and the investors that hold it.
The court case may take years. But if XRP is ruled as a security, it would seriously hurt a lot of US users, and to a certain extent, other users around the world too. It certainly doesn't look like a security to me, but that's just one person's opinion.
— CZ Binance (@cz_binance) December 12, 2018
Right now, based on market capitalization, XRP continues to trade back and forth with Ethereum for the #2 spot, and the number of XRP HODLers are higher than any other cryptocurrency globally.
That being said, earning a classification as a security would ensure that the crypto market instantly becomes the victim of a nearly $13 billion loss. Furthermore, the investors that bought XRP during the last bull run would see the most substantial loss.
Peter Brandt is known for his work as a leading chart analyst and a financial asset trader, but he recently took center stage in this debate by calling Ripple a “glorified version” of PayPal.
He has continually warned investors about potential price manipulation regarding this coin, and he’s hardly surprised by the controversy, because the fiat volume of XRP has always been a point of contention.
The bag holders need to careful in their manipulation of this security (not a crypto). A decline below .2467 and they might be stuck holding a bag full of rotten goods. $XRPUST pic.twitter.com/KWN8gmeaEQ
— Peter Brandt (@PeterLBrandt) March 6, 2019
Brandt believes the bottom of XRP will be at $0.246, which is the point when the token formerly started rising in value in 2017, eventually reaching $3.40.
Any break below this number would shatter the confidence of investors, and it would be highly unlikely that they would ever be able to reconcile their previous success.
At the time of writing, XRP was trading at $0.313882 at the #3 spot by market capitalization, dropping 1.48% in the last 24 hours. However, considering the way that Ethereum tends to bounce around in their price as well, there’s still a chance that Ripple will jump up a spot in the rankings.