XRP disappoints after Ripple’s surprise $ 10 billion increase [Updated]

Ripple, the company behind the cryptocurrency XRP, today revealed a $ 200 million funding round, valuing the company at $ 10 billion.

Ripple’s news, announced on the company’s website, pushed the XRP price up sharply, up roughly 4% over the last 24-hour trading period, to $ 0.19 per XRP token.

[Update 4:31am EST 12/21/2019] The XRP price failed to continue its rise yesterday, ending the day at around 3% and leaving traders and investors disappointed that Ripple’s huge $ 10 billion valuation didn’t cause XRP to surge. XRP’s earnings have not translated into gains for the broader bitcoin and cryptocurrency market, with most of the major flatline tokens.

Ripple’s XRP is the third largest cryptocurrency in the world, behind bitcoin and ethereum, but it has had a tough year as the world’s largest banks, payment service providers and technology companies try to create their own digital tokens.

However, Ripple chief executive Brad Garlinghouse told Fortune magazine that he expects the company to increase its customer base from 30% to 40% in the next year, from the current 300, and said the volume of transactions on the Ripple network will increase by more than 600%.

Ripple’s new Series C funding round, led by global investment firm Tetragon and backed by SBI and Route 66 Ventures, will be used to increase the number of banks and payment firms using XRP cryptocurrency for international transactions.

“We are in a solid financial position to perform against our vision. As others in the blockchain space have slowed their growth or even closed, we have accelerated our momentum and industry leadership throughout 2019,” Garlinghouse said in a statement. , adding Twitter this is “a great end to 2019 for Ripple and the crypto space in general”.

XRP, the digital currency created by Ripple, has experienced a strong downward trend all year, losing around half of its value over the past 12 months.

Ripple owns about 60% of the XRP tokens, but most are locked in long-term memory.

Ripple, based in San Francisco, earlier this year announced it had bought a stake in the money transfer chain Moneygram, which now uses XRP for 15% of its transfers to Mexico.

Ripple’s XRP, one of bitcoin’s oldest rivals and the third largest cryptocurrency by market cap, has endured many of the cryptocurrency industry’s ups and downs since it was released in 2012, earning its fair share of fans. and detractors along the way.

In October, Ripple revealed it had sold XRP worth $ 66 million in the third quarter of 2019, down 74% from skyrocketing sales of $ 251 million in the previous quarter.