Ripple (XRP) Rebounds After Cryptocurrency Market CrashJan 20, 2018 at 2:35
Ripple (XRP), the world’s third-largest cryptocurrency by market capitalization, has recovered by 77.5% percent of its losses this week in the last 48 hours, according to data from CoinMarketCap. Ripple’s XRP token kicked off trading today at $1.58– an almost 78% percent surge on its Thursday low of $0.89.
XRP fell below $1 for the first time since December this week after the threat of South Korean regulators banning cryptocurrency trade sent Ripple, bitcoin and Ethereum crashing on the markets which had been spooked investors of regulatory crackdowns.
South Korea — one of the largest markets for cryptocurrencies — has reportedly been considering the shutdown of trading through cryptocurrency exchanges. On Thursday, the country’s policymakers said they were considering closing all domestic virtual currency exchanges, echoing a move last year from Chinese regulators.
China, separately, is reported to be deepening its clampdown of its digital currency market. The country is planning to ban the centralized trading of digital currencies.
Ripple was dealt a crushing loss of more than $114billion to its January 4 record market capitalization of $148billion, falling on Thursday to a new year low of $34billion.
XRP has now rallied to clawback $25billion in just 12 hours, at 3.24am.
Meanwhile, in a just past few weeks the digital currency plunge has wiped billions from the paper fortune of co-founder and executive chairman of Ripple, Chris Larsen.
Ripple’s XRP coin has fallen 74 percent from an all-time high of $3.84 hit on Jan. 4, erasing $44 billion from the holdings of cryptocurrency billionaire.
With XRP trading near $1 Wednesday, Larsen now holds the equivalent of just $15.8 billion, citing sources at Ripple, Forbes said earlier this month that Larsen has 5.19 billion of XRP and a 17 percent stake in the start-up. Ripple holds 61.3 billion of the 100 billion XRP coins in existence.
At XRP’s peak on Jan. 4, Larsen was worth $59.9 billion. That made him one of the five richest people in the U.S. and wealthier than Google’s founders, based on Forbes’ rich list.
XRP was developed and released in 2012 by Ripple, to enable “secure, instant and nearly free global financial transactions”. It is built on principles like those of Bitcoin, so many people consider it a cryptocurrency. However, unlike Bitcoin, the source code of Ripple’s technology is owned privately by the company, which means that it cannot be verified by any outsider. Ripple is a very popular network: many banks across the world use it as the basis for their own settlement infrastructure, and its native currency XRP (ripples) has been consistently present in the top 5 cryptocurrencies by market capitalization for the past several years.