There was some hype that Ripple would have a price boost today because it was added to BitOasis, a Middle East and North African cryptocurrency exchange. However, Ripple price is largely unmoved on the day. The general direction of XRP price today is, downward.
Not Major Markets?
It seems that the addition of XRP to BitOasis was a non-news item for the rest of the crypto world. Does that mean the Middle East and North Africa are not a force in the cryptocurrency markets? It could simply be that Ripple is not seen as being a major player even though they are third in terms of market capitalization. Or perhaps all of that is just being overshadowed by something much larger and more worrisome to the markets.
South Korea Regulation
This is most likely the major factor in today’s Ripple price downturn, and of cryptos in general. South Korea, today, began a new set of rules in regards to cryptocurrency trading. South Korean citizens can no longer trade XRP or other cryptocurrencies anonymously. All accounts in the country had to be verified with real identity information. This is the second step they have taken to regulate the rising cryptocurrency trading in the country. The previous regulation was that they would begin taxing exchange at 24.2%.
For crypto traders around the world, this is far better than South Korea’s original announcements on the topic where they stated they would flat out ban all cryptocurrency trading. That particular piece of news sent Ripple price and almost all others plummeting toward recent lows. The reason that this all hits the market so hard is due to claims that 20-30% of Bitcoin, Ripple and others are traded through Korea and other parts of Asia.
Fraud, Crime, and Laundering
The reason that South Korea is taking such a hard stance? They believe that crime, fraud and money laundering are rampant in the anonymous trading of Bitcoin, XRP, and others. The new regulations are aimed at cracking down on all of that and attempting to get a grip on what Ripple and cryptos in general mean for the future of the country. The South Korean government has also come out to say that they see people as being addicted to crypto trading because of its high volatility.
What’s Up with Ripple Price?
XRP, the cryptocurrency created by Ripple, has been on a mostly downward slide for three weeks. After it hit an all-time high of $3.84 on January fourth. Since then it has dipped as low as eighty-nine cents and today is in the $1.22 range, down around 9% today. Volume of XRP has also been extremely low of late with it not even clearing $700M on Saturday, and not pushing past $3B for over a week and a half.
Who knows what the future holds for Ripple price. XRP is a different kind of crypto because of how it was made and the fact that Ripple has 55B coins still locked up in escrow. They are making inroads into their target market, bank-to-bank payment processing. The success of Ripple is deeply tied to the success of cryptocurrencies in that the underlying blockchain technology of both is being verified every time a large company like Moneygram or American Express sign on to pilot its use.
Remember, this is just news and information. It’s not financial or investment advice. As always, do your own research and base your own decisions on the information you put together.