Ripple Price Analysis: With New Investors Come Old Myths About XRP

xrpRipple News Update

You would think that by now—after months of fighting the fear, uncertainty, and doubt (FUD)—investors would be able to separate fact from fiction. Apparently, that’s not the case.

Some are still confused about Ripple’s upside. They still believe its management is intent on manipulating XRP prices, or that its token is completely useless. One investor even commented on a recent article, trotting out all of the old arguments against Ripple.

I’m not saying this to make that person feel bad. I sense they had a genuine curiosity about Ripple, but I want to emphasize that the persistence of these myths are harmful to the short-term (and apparently long-term) price of XRP.

Here’s a brief list of the commenter’s questions and concerns:

  1. “[How] do you come to the price of $10.00 when the question of xrp token is in doubt?”
  2. “[Does] it have any use?”
  3. “[Banks don’t] have to use it. [It’s] only used by ripple […] to make more money from unsuspecting buyers who buy it up not knowing its price is artificially kept low.”

I’m going to try and answer each one in turn.

  1. Although you haven’t specified what you mean by “the XRP token is in doubt,” I’ll hazard a guess that you think XRP is meaningless. I strongly disagree. XRP’s purpose was less clear a few years back, when there was insubstantial liquidity in the market. But that’s all changing. Liquidity, especially between blockchains, is becoming more and more important, thus increasing the importance of a connective blockchain like XRP.
  2. XRP most certainly has uses, as I stated above. It can be used to move money between blockchains, banks, and other financial institutions at very little cost or inconvenience.
  3. This myth is probably the most damaging to XRP prices, and it’s not true. In December, Ripple (the company) locked up 55 billion XRP in an escrow account that unleashes one billion every month. As such, the company made it impossible for it to manipulate XRP prices.

Ripple (XRP) Price Chart

ripple price chart for 28 feb

Putting the lion’s share of its holdings into escrow was the smartest move Ripple ever made. It convinced huge swaths of investors that XRP was not a scam, starting a rally that lifted the crypto from obscurity to center stage. That said, the message didn’t reach everyone.

Analyst Take

In case you’re not convinced that XRP has practical applications, consider that major remittance companies are actively using the crypto for cross-border payments.

Also consider that Michael Arrington launched a $100.0-million fund denominated in XRP, and that SBI Holdings is launching an exchange whose primary crypto is XRP. There are plenty of applications, if you’re willing to look.

In any case, these various reasons justify our $10.00 Ripple price prediction.