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Would you be overjoyed if you woke up every morning and saw your money doubled, and it happened again and again? If you do, then there is something called Ripple that you might want to check out, because the above situation really happened with Ripple. Recently, digital currencies have been developing rapidly, and Ripple seems not to want to be left behind. In fact, Ripple has had the most spectacular performance so far – rising 10x in just two weeks. As of this writing, Ripple’s market capitalization has risen from insignificance to an incredible $14 billion, reaching half of Bitcoin’s market capitalization. Its market value has previously surpassed the market value of Ethereum, and reached double the market value of Ethereum within a few days. This attracted the attention of many people, and people began to re-recognize the existence of Ripple.  Ripple surges Ripple announced in a press release on March 1 that “forty-seven Japanese banks are using Ripple to move toward commercial stage,” followed by a press release on April 26 stating that ten banks had joined the process. Shortly afterwards, the market value of Ripple began to rise wildly. Interestingly, Japan apparently has over 198 banks, although only about 35 are listed on Wikipedia. Regardless, this sounds like good news for Japan, so they may push the price of XRP higher. But according to coinmarketcap, only about $300 million in trading volume comes from Japan. Additionally, and somewhat puzzlingly, XRP is trading in Japan at half its current price, with one XRP worth just $0.18 in Japanese yen, while other currencies are trading XRP at around $0.37. Therefore, Japan is obviously not at the helm. On the contrary, Poloniex and South Korea are leading the way. Apart from the above news, there seems to be no other new news worth mentioning, but we can take a look at the history of the Ripple market and perhaps find some very interesting things. The following chart dates back to November 2013.  Ripple’s historical market capitalization At that time, 50,000 XRP had just been distributed on bitcointalk to anyone with an account. According to Wikipedia statistics, one-fifth of the total amount, or 20 billion XRP coins, is retained by the founders, of which John McCaleb (Jed McCaleb) holds about 10 billion XRP coins. The total amount of Ripple coins is 100 billion, and the other 60 billion are held by Ripple Labs. Ripple Labs is a centralized company registered by Fincen to operate currency transmission business and operates the consensus network of most Ripple coins. McCaleb had a falling out with others in Ripple Labs, so he left and funded a Ripple clone called Stellar, threatening to sell his 10 billion XRP coins at market price. They are currently engaged in a legal battle, so the 10 billion XRP coins have not yet been sold. In addition, in 2014, a flaw was discovered in the Stellar consensus system, which was similar to that of Ripple. The chief scientist of Stellar believed that the Stellar system may be less secure when running multiple verification nodes, because when consensus has not been reached, a part of the network may not agree to accept transactions and cause a ledger fork. Ripple’s chief cryptographer concluded that Stellar (created by Ripple’s founder) simply implemented the consensus system incorrectly and suggested that “this poses no threat to the continued operation of the Ripple network.” Now, if we look back at the chart above, Ripple saw a sharp rise and fall in price in November 2013, another sharp rise and fall in November 2014, and is now rising sharply again. The recent price increase has been almost vertical, adding $6 billion in market capitalization in just one day, but it has almost no community or even any projects or ecosystems, except for some cooperative Japanese banks, and they don't seem to be giving much trading volume either. So will this be a huge bubble? No one can be sure. But everyone must remain vigilant, because it is difficult to find a pattern in the appreciation of Ripple value in history, because the currency is very concentrated, and most coins are only in the hands of a few people. The market has considered the possibility of Ripple many times, only to reject it many times. This time seems to be no different, so there is no reason not to reject it anymore, so this time Ripple may also enjoy a brief moment of fame before falling into irrelevance, such as Monero and Dash, and now perhaps the same is the case with Litecoin. Disclaimer: The views expressed in this article are those of the author and do not represent the views of Lei Ying, nor does she represent Lei Ying. This article comes from CryptoCoinsNews , compiled by Lei Ying. Disclaimer: The above analysis data changes in real time 24 hours a day. The market analysis in this article is for reference only and does not constitute any investment opinions or suggestions. Investors should learn about the risks or seek professional investment advice on the relevant product pages.  |
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