Ripple’s XRP token has endured a turbulent year, with more than $10 billion being wiped from the cryptocurrency’s total market cap.
In late June, the price of XRP reached dizzying heights as it tested the key $0.50 level of resistance.
However, the euphoria was short-lived as XRP proceeded to slump dramatically in the following months, eventually succumbing to a depressing yearly low of $0.21 in September.
Two months on, and despite a test of the $0.31 region in early November, XRP continues to stagnate at around $0.24.
The market cap of XRP is now just $10.68 billion, which is 50% down from its yearly high of $20.7 billion and a far cry from its all-time high of $146 billion in January 2018.
XRP’s fall from grace has been a result of a number of factors, one of which has been the negative press it has received from a large section of the cryptocurrency community.
Many claim that Ripple and XRP are not decentralised, while some have also suggested that the token should be considered as a security under Securities Law in the US.
Ripple founder Brad Garlinghouse has strongly refuted those claims, adamantly stating that “XRP is not a security”, but the negative press has left a sour taste in the mouths of investors.
One of the other huge criticisms against Ripple is its decision to offload XRP tokens on a monthly basis in over-the-counter deals.
This, according to a group of aggrieved XRP investors, is unlawful and has resulted in a lawsuit against the Ripple Foundation.
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