Not all cryptocurrencies are the same. Many of these alternative cryptocurrencies claim to offer investors more advanced technology than bitcoin’s blockchain and have benefitted from the cryptocurrency craze bitcoin ripple down. But amid the broad cryptocurrency selloff in recent days, Ripple’s fall has been the most dramatic, more than doubling the losses of bitcoin. 70, according to the exchange bitstamp.
Alexander Kravets, a former Wall Street trader and creator of Xtrade. To understand why Ripple has fallen so much, you have to understand how it differs from bitcoin and other alt-coins. Unlike most cryptocurrencies, which play up their decentralized structure, Ripple’s founders decided to go the other way. They have created a currency that’s highly centralized, which means that the company — not individual investors — controls how much supply of XRP leaks out.
The United States isn’t the only market riding the cryptocurrency craze. Because of the frenzy, many cryptocurrencies including XRP trade at higher prices on South Korean exchanges than in the U. So much so that the crypto exchange Coinmarketcap. Korean exchanges from its price calculations. This disproportionately impacted Ripple sending the price of XRP instantly downward, according to Bloomberg.
XRP’s rise over the past year had a lot to do with its client base. Unlike Bitcoin, which has great appeal to individual investors, Ripple has been favored by the business community. Over 100 financial institutions, like UBS, Santander, and the Royal Bank of Canada have used the Ripple platform, according to the company, to conduct trades internationally. That’s partly because of the speed with which Ripple’s ledger can process trades globally. Bitcoin takes four hours to settle a transaction.