Ripple News Update
As we wrote a few weeks ago, the market is starting to respect the differences between various cryptocurrencies. XRP is not Ethereum. And Ethereum is not Bitcoin. So why treat them as a group?
This trend is real. But it isn’t happening fast enough to forestall the uncertainty sweeping across crypto markets. Prices are crashing and investors are fleeing. It is brutal to watch.
What’s causing this uncertainty? Maybe it is the onslaught of new regulations or the persistence of cybersecurity threats. Perhaps it’s the mass of ponzi schemes masquerading as legitimate cryptocurrencies. There are any number of things weighing on investors’ minds.
Here are a few of them:
- India says crypto is not “legal tender.” Finance minister Arun Jaitley delivered a hammer blow to cryptos this week, saying that India does not recognize virtual currencies as legal tender. Mr. Jaitley added that his government will support the integration of blockchain technology into the payments system, but it will fight tooth and nail against digital assets like Bitcoin. (Source: “Arun Jaitley has just killed India’s cryptocurrency party,” Quartz, February 1, 2018.)
- Senate announces hearings on crypto. The head honchos of the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) will testify before Congress. They probably won’t be kind to cryptocurrencies, which we know because they published a joint op-ed last week. In the article, they promised much greater oversight of initial coin offerings (ICOs).
- Bearish comments from Davos. Plenty of economists—including those with “Nobel laureate” in front of their names—spoke against cryptocurrencies at the World Economic Forum. Since they have the ear of policymakers around the world, this is worrying.
- Korea launches an investigation into illegal trades. According to the Korean Customs Service, more than $600.0 million was moved illegally through cryptocurrencies. This is exactly the kind of thing that upsets regulators. An investigation is underway at the moment.
- Facebook is banning crypto advertising. The social media giant is weeding out promotions for Bitcoin and ICOs. This is ostensible to protect investors, which seems like a reasonable action given the number of scams out there. However, they could damage existing investors in the process.
- Shady operations, galore. The CFTC issued subpoenas to a well-known exchange (Bitfinex) and the company behind the USDT token (Tether). Meanwhile, a U.S. court froze Bitconnect’s assets to prevent the company from shuffling its finances.
All this happened in a week. It ramped up investors’ uncertainty about the future, making the market fitful and hypersensitive. No one is confident about the future. As a result, crypto prices are falling across the board.
Ripple (XRP) Price Chart
Panic is in the air. When tensions run this high, it’s always best to take the long view. Accept that we’ve entered a bear market for cryptocurrencies. Will it last? Only for the cryptos that were meaningless, to begin with, I’d say. So stick with value plays, such as XRP and Ethereum.
At present, we see no reason to alter our $10.00 Ripple price prediction for 2018. However, that may change if regulatory conditions change for the worse.