Over the past 24 hours, the XRP token has plummeted 47 percent to the current $0.38. The currency has been in the midst of a massive liquidation of traders' margin positions, with $508 million in losses. Yesterday, February 1, the coin exceeded $0.75 for the first time since November of last year, after which it began a steep decline.
XRP's future course of action largely depends on how the litigation between XPR's issuer, Ripple, and the U.S. Securities and Exchange Commission (SEC) develops, Coinspaid CEO Max Krupyshev explained. The SEC accuses the blockchain project of unregistered sales of $1.3 billion in securities disguised as XRP tokens.
He added that XRP should be entered with extreme caution because it has always been prone to "Pump & Dumps. For example, in January 2018, quotes rose above $3.7. Since then, the altcoin has fallen 89%. Grigory Klumov, founder of stable cryptocurrency platform STASIS, called Ripple a "scam" (a fraudulent project that attracts investors' money with empty promises - editorial) and "an extremely manipulative story."
"Ripple developed as a scam, was sold as a scam, is now trading as a scam. I wouldn't argue that its quotes were driven by Reddit traders, rather someone may be doing it under the guise of Reddit traders," Klumov suggested.
- "Practice shows that such court cases in the U.S. are considered for years, a quick resolution of the situation should not be expected. The risk of a prolonged correction of the XRP exchange rate is high. But it is possible that the founders of Ripple will quickly agree to a settlement, haggling over a couple of months for favorable terms. And after the fines are paid, the project will continue to quietly develop further, especially since Ripple is backed not so much by retail investors as by financial institutions, banks and payment systems that have partnered with Ripple in recent years," Krupyshev stressed.
- "XPR is an accomplished story, about which it was initially clear that it was almost entirely a fraudulent story," Kravchenko concluded.