Ripple News Update
A few weeks ago, I warned investors that regulators would tighten their grip on cryptocurrencies. This would lead to increased volatility in cryptocurrency prices, I said, including useful cryptos like XRP.
One of the examples I cited was the International Monetary Fund’s (IMF) desire to create “global trading standards” for cryptos. It seemed noteworthy that the IMF was making overtures to various countries about their domestic crypto regulations.
It wasn’t a Pulitzer-worthy story, but it did the job of informing investors about a potential headwind. Some readers, however, disagreed with my assessment. (Source: “XRP Trading And Price Speculation,” XRPChat, January 22, 2018.)
One commenter responded by saying:
“The IMF is mentioned yet the article makes no mention of the fact that the founder of Ripple and largest holder of XRP is ON THE IMF ADVISORY BOARD FOR FINTECH! If the IMF wants to get involved with Crypto, have at it as far as im concerned. Ripple might have a leg up in that particular scenario though.”
When the commenter says “the founder of Ripple,” I take it they are referring to Chris Larsen. Larsen helped build Ripple from the ground up. He served as CEO during the firm’s early years, before relinquishing that role to Brad Garlinghouse in 2016.
It’s true that Larsen owns a ton of XRP and that he now sits on an advisory board at the International Monetary Fund. But that doesn’t matter as much you think, dear reader.
Ripple (XRP) Price Chart
The International Monetary Fund and its counterpart, the World Bank, are sprawling organizations held together by masses of red tape. They are not idealistic think tanks eager to advance the best ideas. They are extremely political institutions.
Let me give you an example…
Paul Romer was the chief economist of the World Bank. When he dared to criticize how the Bank ranked Chile, they let him go—it didn’t matter that he was right. He’d stirred up too much controversy. He tried to change the status quo and that sealed his fate.
The IMF and the World Bank don’t want change.
As such, I’m not impressed by a working committee on blockchain. Do you really think that Chris Larsen will steer IMF policy? That’s a pipe dream. He’s there so they can say: “Look! We have some blockchain experts! That way you can’t criticize us when we shut down blockchain.”
If you think XRP can ride Larsen’s coattails to the finish line, don’t get your hopes up. Only Ripple’s clients—with their vast resources of political capital—can save XRP prices from adverse regulations.
With that said, our next Ripple news update is going to focus on the dire situation at hand. Bitcoin is at $6,300. Ethereum is just above $600.00. And the XRP to USD exchange rate is near $0.650899. How in the world did we get here?
Given the steep fall in cryptocurrencies, we might have to reevaluate our $10.00 Ripple price prediction for 2018. Stay tuned.