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Despite the fact that XRP is actively used by Ripple in many of its solutions that are gaining popularity, it may become the worst-performing major crypto in 2019.
In what is seen as a paradox that has put many pundits on the edge, recent data indicates that XRP that is widely used by Ripple in its solutions is already less than one month away from being the worst-performing cryptocurrency token that is among the top ten in terms of market capitalization. Research indicates that coming up as a close second in this regard is Bitcoin Cash (BCH) which has lost 49% of its value since its all-time-high as against XRP’s 51%.
XRP at the time of the 2017 crypto-bubble was the darling of the crypto space and everyone thought that this year with the thawing of crypto winter the same scenario will repeat itself and XRP will once again rain as one of the cryptocurrency communities’ undisputed champions. However, the reverse has been the case as, despite the corporate gains made by Ripple Labs, with the addition of over 200 partners and expansion of its solutions that use XRP, prices simply refused to go in tandem with everyone’s’ expectations.
Even the Swell event that promised to be the gamechanger did little to XRPs prices and this didn’t materialize as many in the crypto space have been left to wonder what exactly is going on with the cryptocurrency token that is currently the darling of many financial institutions.
One major overlooked issue concerning the XRP token price is the so-called escrow sales which most of the time is in so many voluminous amounts of XRP tokens. These token escrow sales have created excess liquidity of the token in a market place where XRP tokens don’t have any distinct value. As such, the value is expected to remain in the doldrums as far as prices are concerned.
The other issue that has harmed XRP prices is the legal situations concerning it. Several disappointed investors have been able to keep Ripple Labs in a legal quandary concerning XRP’s status. Certain claims have been made that the token has failed Howey’s test severally which is the core measure by which is one of the core arguments that Ripple Labs has vehemently fought against many more times than be counted.
Ripple Labs, on the other hand, has made tremendous inroads in encouraging the inclusion of the usage of XRP token. With over 200 partners and clients using its famous RippleNet for all sorts of values transfers including remittances and the like, Ripple has also branched out into the research and development community and brought together prominent educational institutions in what is known as the Blockchain Research Initiative for Universities (UBRI). The University of Tokyo was recently added as a partner and XRP validator on RippleNet. UBRI provides all sorts of advantages for the academic institutions that are partners which include insight into how Ripples’ mainnet works and also funding for certain types of projects as well.
Moreover, there is one more new move. Now thanks to Ripple’s ODL (On-Demand Liquidity) deposit USD to the Bitstamp exchange using XRP. The key player that uses ODL is Moneygram. Approximately 10% of all the conducted transactions between Mexico and the U.S. the company conducts via ODL.
How this will play out into affecting the price remains unknown but Ripple Labs has indicated a disinterest in the price of the token. Despite the fact that some experts still insist that XRP is a security, the company continues to deny such things. One thing is certain, however: this is not the end for XRP. Not even close.