Why is the price of XRP so low? Mati Greenspan's thesis is probably the one that comes closest to reality

By Roberto D. | CryptoFarm | 31 Dec 2019


During 2019, Ripple grew a lot as a project, a growth obtained also through strategic partnerships, such as those with RIA and MoneyGram, which have strengthened and consolidated the relevance of the platform in the money transfer market; despite all this, however, the price of XRP has continued to fall, causing hysterical crises in the community.

Mati Greenspan, founder of Quantum Economics and an established cryptocurrency trader, has also intervened on the issue, who has pointed the finger, like many before him in recent months, directly against the company guilty, according to him, of sinking the price of XRP by selling on the markets in order to finance itself.

There is, however, a second reason according to Greenspan that the price of XRP does not take off: the problem is that the ripple network does not need to necessarily convert to XRP in order to be able to move value and this, consequently, severely limits demand by preventing price to take flight.

 

Greenspan thus replied, via twitter, to those who asked him for information on the price of XRP, personally I am not so convinced that to curb the recovery of the prices are the coins that, monthly, ripple releases on the market, I believe instead that Greenspan has seen us right highlighting how most of Ripple's partners use xCurrent only to move funds quickly, while very few people make use of the liquidity on demand system (formerly known as xRapid) which instead requires necessarily converting to XRP to work.

This has meant that the concrete use cases of the token within the ripple ecosystem are much lower than they could have been if the developers had decided to bind users to the use of XRP.

Greenspan however reiterated that when the short-term pressure due to the ripple sales will drop (which is already happening) and the adoption of the network will increase XRP the price will start to rise again, so in a long-term perspective his approach to this coin still remains bullish; while the controversies follow and the community continues to hold its breath on the ripple neck, the company has already decided months ago to reduce the sale of XRP on the markets but this has not generated any reaction and the price, in these last remnants of the year, it returned to moving to the historical lows of July 2017.

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Roberto D.
Roberto D.

Born, and still living, in Italy. Passionate about cryptocurrencies since I discovered ethereum in 2016 https://linktr.ee/robertod


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