Ripple price slump of 25% – CEO nevertheless sees interest from institutional investors
Just in time for Black Friday, the courses went south today. Even Ripple with his native crypto currency XRP couldn’t save himself from that. The XRP course has briefly collapsed by more than 25%. Was that in the end only a necessary correction or is XRP now going Bitcoin Profit further downhill? Are there perhaps even institutional investors waiting to enter XRP?
Correction also hits Ripple (XRP)
Tonight there was „finally“ a correction, which many had been expecting for weeks. The Bitcoin exchange rate has fallen by about 3,000 USD and has also knocked down all the old coins.
This has mainly to do with the high dependence on the Bitcoin exchange rate. As a rule, Altcoins suffer much more than Bitcoin itself. So does XRP. Nevertheless, one must not forget at this point that the Ripple price has increased considerably in the last few weeks and has recorded a rise of about 200% in some cases.
Institutional interest also in XRP?
Ripple and XRP have come back to life after a long dry spell and Brad Garlinghouse, Chief Executive Officer of Ripple, sees the opportunity for XRP. Especially the increasing interest of institutional investors could hit XRP, according to him. However, he mainly talks about the fundamental interest of institutional investors in crypto currencies.
In a series of tweets Garlinghouse said that the increasing interest of institutional investors in Bitcoin is mainly due to its quality as a store of value. Bitcoin is, according to him, an „extremely useful inflation hedge“.
The CEO of Ripple naturally took the opportunity to point out the properties of XRP. He mentioned the fast and cost-effective transactions of XRP and mentioned the possibility of scaling on the XRP ledger.
Never a dull moment in crypto! Institutional investor interest is skyrocketing… industry growth comes down to real world utility. As a store of value, BTC is an extremely useful inflation hedge. XRP’s speed, cost and scalability make it extremely useful for payments. (1/2)
– Brad Garlinghouse (@bgarlinghouse) November 19, 2020
He thus says that Bitcoin is a store of value and XRP is a means of payment. Garlinghouse fails to mention here that a long-term means of payment must also be a store of value according to the definition of money.
Institutional investors focus on Bitcoin
All projects compete for the money of institutional investors. But not everyone gets a piece of the cake. This is also the case with XRP. The probably biggest news of the last months – Bitcoin integration at PayPal – was completely missed by Ripple.
PayPal integrated 4 crypto currencies and left XRP out completely. What exactly was the reason for that, can’t be said at the moment. It might have something to do with the legal uncertainty of XRP in the USA.