In a new edition of this week’s downward trend, we have the altcoin Ripple (XRP) which overtook Ethereum and became the second largest cryptocurrency by market cap – and its recent price drop which went viral everywhere in the crypto news.
The intense downtrend finally took a toll on Ripple, even though it seemed like the cryptocurrency is resistant to it. Ripple, which is now the second most valuable cryptocurrency, is no longer up in value on a monthly basis. Over the past 30 days, XRP maintained the $0.5 level relatively well with minimized losses – during a period when Bitcoin and other top coins fell by 20% and even more.
If you are asking yourself what was the primary reason for Ripple’s drop, the truth is that XRP is a liquidity network that provides major banks and financial institutions the ability to move cross-border payments with low fees. Hence, a large supply of XRP is crucial for the Ripple blockchain network to operate.
This week, around $16 million was removed from the Ripple Distribution wallet to an unknown one, injecting more XRP into the market. Over the past 12 hours, XRP fell from $0.48 to $0.41 and then recovered at the $0.43 support level.
It is entirely possible (given that XRP has been successful in maintaining the $0.4 support level) – that this increase of the supply of XRP in circulation affected the short-term price trend of XRP.
Ripple Is Selling XRP At Discount To Institutional Buyers
“We would hypothetically have restrictions about what they can sell and how often, and usually those are based upon volume in the market,” Garlinghouse noted.He also talked about the price at which XRP is sold, being featured in the coming altcoin news for his unique response to the interviewer's question:
CNN asked "So you might give them it slightly cheaper but you say to them, ‘hey, you’re not allowed to sell it for six months, let’s say, or a year’,” on which the CEO of ripple replied “Correct, that’s basically correct,” even though the rest of his statement was cut off.Also, the CNN interviewer asked Garlinghouse about the proportion of ownership that Ripple has currently, as well as its amount of power and ability to control the price. The CEO replied that Ripple is still the largest owner in the XRP community and that they would never dump XRP which would go "against their best interest." Garlinghouse also said that the team has "taken steps to lock up most of the XRP we own in escrow, so that we can’t touch it.” https://twitter.com/jchatterleyCNN/status/1172151590763016193 What's also interesting is the fact that in August, the CEO of Ripple has confirmed that Ripple hasn't increased - but instead decreased its sales by volume Q/Q and since then, the inflation rate of XRP and the circulating supply has been lower than the one of BTC and ETH. In value, sales for Ripple increased by 48% which is probably another reason why Ripple is selling XRP with a discounts - to trigger further growth. In either case, the company confirmed that it "plans to take a more conservative approach to XRP sales" in Q3 this year. The interview was featured on many best cryptocurrency news sites.
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“Just from a business perspective, we don’t look like an Internet company today. An Internet company can launch something and it’s available around the world. Whereas with payments, you have to go to each market and pay attention to regulators. You need a partnership with a local bank. This is a very slow process in any new market.”The new announcement about stock trading features on the Square Cash App has been well received by the crypto community.
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Ethereum Classic Successfully Implemented Its Atlantis Hard Fork
“Congratulations @eth_classic on the successful activation of the Atlantis Hardfork! Was one of the longest debates to reach consensus along with a lot of the immutability politics Learned a lot about the beauty of decentralization and a distributed community.”As such, Ethereum Classic successfully performed the Atlantis hard fork in accordance with the previously estimated time - between September 12 and 13 this year - at block height 8,772,000. The ETC Labs team was also featured in the altcoin news this June for stating:
“The community has had a number of meetings to discuss timing, scope and involvement, and we have decided on the direction and timing of the Atlantis release.”The Ethereum Classic is meant to improve security while taking into account the community's concerns. It is also considered as a no-rush update which will ensure the compatibility of ETC with Ethereum, which will make it easier to collaborate with sibling blockchains. As many news sites reported in June, Ethereum Classic successfully planned on the entire hard fork. The developers and contributors considered putting the hard fork at block number 8.75 million, predicting it to run on September 15. However, ETC Labs moved to increase the block number so that it would have the projected update during the week, in times when more involved parties are more likely to be present to discover and deal with issues which may arise. Following the announcement, Ethereum Classic successfully launched the hard fork and received support from a lot of industry players. It seems like ETC Is in the focus of the coming altcoin news. Yesterday, the cryptocurrency trading platform Bitfinex announced that it will support Atlantis as well.
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