Ripple Price Prediction: Better Standards Could Lead to Better Cryptos

ripple price forecastRipple News Analysis

Until now, or maybe even at this very moment, blockchain companies have been operating in the Wild West. There are no rules.

This may seem like the optimal situation to people who despise government, but I think having no rules is bad for business.

Consider the theft of $500.0 million NEM coins last month—the only reason it happened is because an exchange holding NEM did not employ its full suite of safety features.

Why were they allowed to be so careless?

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If the exchange had been forced to comply with federal standards, or apply for a federal charter, this probably wouldn’t have happened. In other words, regulations can be a good thing.

(Side note: The hack took place in Japan, where exchanges are supposed to gain approval from federal regulators. However, Japan was in the middle of implementing those checks and balances, and as a result, the exchange had not gained approval yet.)

This tightening of regulation is hurting cryptocurrency prices. Ripple prices, for instance, are down another 7.3% today, bringing the XRP to USD exchange rate to $0.797992.

It’s understandable. When investors see governments butting into commerce, they get bearish in a hurry. I get it. However, I don’t agree. In this particular case, I think regulations are a good thing.

The more time we spend chasing down crypto robberies and debating over which exchange is engaged in manipulation, the less time we spend on scaling blockchain solutions. Providing a level playing field is what governments should be doing.

I’ll give you another example.

The other day, a commenter accused me of being a “shill” for Ripple. They argued that I was bullish on XRP because I would make a killing if the price skyrocketed…except I don’t own XRP. I don’t own Ethereum, Bitcoin, NEM, IOTA, or any other cryptocurrency.

This may seem shocking given the number of “cryptocurrency experts” that show off their “Lamborghinis” and tell you what to invest in. But in journalism, there is a name for such practices: “Pump-and-Dumps.” You pump up the price by promoting the investment, then dump it before everyone realizes what you were doing. We don’t do that.

It is a major conflict of interest to write about investments you own.

Regulators in Canada and the U.S. are finally starting to crack down on pump-and-dumps, which means we could see better standards in cryptocurrency journalism. So even though the bureaucratic red tape is annoying, it does serve a larger purpose.

ripple price chart for 9 mar

Analyst Take

I actually think regulation will help cryptocurrency prices over the long haul, but most people will call me crazy for that. My only consolation is knowing that they called me crazy before, when I predicted XRP prices would blast off from $0.17. They did then, and I think they will again, which is why we are maintaining our $10.00 Ripple price prediction for 2018.