Ripple News Update
Over the last week, South Korea and Ripple were inextricably linked over the subject of regulation. Korea was on the verge of a full-scale trading ban—rumors even spread that the ban was official—and markets were in a constant state of paranoia.
As a result, XRP prices fell constantly throughout the week…until last night.
A ray of sunshine peeked through the clouds on Thursday morning, as South Korea reached a deadline for its regulatory stance. Today the country has to make up its mind—is it going to ban cryptocurrencies or not? Let’s end the uncertainty, once and for all.
Investors are optimistic and (more than a bit) relieved at the newfound clarity. Ripple rose 42.88% against the U.S. dollar, bringing the XRP to USD exchange rate to $1.51.
Ripple (XRP) Price Chart
Why are investors so sure that Korea will restrain itself?
Well, for one thing, a petition with 200,000 signatures is begging the government not to ban cryptocurrencies. And there’s also no need to use a hammer when more surgical tools are available.
Korea’s stated concern is how anonymity at exchanges can lead to money laundering on a massive scale. A simple way to solve this problem is to ban anonymous trading accounts.
There’s no reason for authorities to condemn the entire experiment, especially given the political consequences. Remember that at the end of the day, “all politics are local.” No sane politician would risk angering a vocal portion of their electorate.
With this in mind, I expect a quick resolution to the panic that’s been plaguing cryptocurrencies.
Crypto prices, especially XRP prices, might benefit from closure on this issue. However, there are potential risks surrounding U.S. rating agencies and their upcoming verdicts on virtual currencies. (Source: “US Rating Agency will issue letter grades on Cryptocurrencies next week,” RippleNews, January 17, 2018.)
I would keep a weathered eye out for announcements from Fitch Ratings, Inc., Moody’s Corporation (NYSE: MCO), or Standard & Poor’s Financial Services LLC, but really, I remain ever faithful to our $10.00 Ripple price prediction for 2018.