The XRP digital asset has fallen into difficult times as its value and usefulness are being challenged.
The digital asset XRP recently renamed by Ripple Labs, Inc., continued its crash, causing a "flippening" with Ethereum (ETH). The positions traded on the basis of market capitalization are not due to a peak in ETH prices, on the contrary, ETH is also slipping, reaching levels not seen by the summer of 2017, canceling most of its earnings .
But the XRP crash is deeper, as hopes of trading on Coinbase have been dashed. Furthermore, a recent lawsuit was rejected by the northern California district in the United States. The cause has, at its center, the biggest problem with XRP.
Plaintiff, Ryan Coffey, claimed to have suffered financial losses after Ripple Labs, Inc. used disproportionate promotional events, and in fact mis-represented the role and nature of the XRP digital resource. In a note the court rejected the motion.
However, similar criticisms were the main source of pessimism for XRP holders. After the rebranding, it became even clearer that the XRP digital asset was not intended to participate in some of Ripple's plans to achieve frictionless inter-bank transactions.
News gain momentum and current investors realize that effectively maintaining XRP may not be useful at all. Good is not a security, it does not give the right to ownership of the Ripple ecosystem. In addition, the asset does not promise future utility, as the Ripple network can transfer funds without the need for XRP coins. So, the XRP was probably created as a way to make the project popular.
Continued pessimism slid XRP to $ 0.30, down 28% net last week.
Trade volumes decreased to $ 196 million and prices fell both terms of dollars and BTC. The XRP was sold in all pairs, including the Japanese Yen, the Korean won, but also the BTC and the Tether (USDT). The XRP has lost more than 91% of its value from the peak, and is among the most depressed digital resources. The hopes of a $ 5 price after mass adoption turned out to be one of the most unrealistic forecasts in the world of cryptographic assets.
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