As with the rest of the cryptocurrency market, China takes center stage in our Ripple news update. It’s the only thing that matters at the moment, though one could argue that XRP is unfairly caught in the crossfire.
After all, less than five percent of Ripple’s trading volume comes from within China. Add that to the fact that the ban is on trading, and not “blockchain activities,” and it seems like Ripple’s eastward expansion is still on track.
What the regulators objected to was the “disorder” of cryptocurrency exchanges. They aren’t fond of chaos. But there is no evidence (as of yet) to suggest they’ll prevent Chinese financial firms from joining the Ripple network.
That being said, Ripple to USD prices fell roughly 14.76% in the last 24 hours. Trading volumes clocked in at around $152.5 million, the majority of which came from South Korean exchanges like Bithumb and Korbit.
Meanwhile, the Ripple to Bitcoin exchange rate jumped a minor 2.39%, showing that at least some investors can tell the difference between public and enterprise blockchains.
This pandemonium means that investors actually missed some really important Ripple news; namely, that Ripple is collaborating with “Hyperledger” once more.The two projects had split apart for design reasons, but now they’re giving it a second chance.
Ripple created this opportunity by partnering with Japanese company NTT Data Corp (TYO:9613). NTT helped Ripple smooth out a few wrinkles in the “Interledger” protocol, which would make it functional with Hyperledger’s more permissioned blockchain.
Ultimately, this kind of collaboration should be driving the Ripple price prediction, but markets aren’t always logical. At least not in the short term.
There is potential for further panic if Huobi and OKCoin, two of China’s largest exchanges, are forced to shut down.
Until now, they have managed to stay afloat, but there are rumors of an afternoon meeting with regulators. If that meeting goes poorly, another round of losses is all but guaranteed.
Despite the fact that Huobi and OKCoin are insignificant to XRP, investors are likely to flee the cryptocurrency en masse. Or at least that is the expectation given past performance.