Alarm clocks went off for many traders today as some got margin called following a jump in crypto prices across the board which seems to have been led by Ripple.
Ripple’s price suddenly jumped at 12 o’clock London time from $0.27 to a recent high of $0.33 on volumes of half a billion for the past 24 hours, but the reason for it remains a bit of a mystery.
There were suggestions this jump was related to some relatively old news, but as such news had splashed many hours before hand, it seems unlikely.
First, Sagar Sarbhai, head of regulatory relations for Asia-Pacific and the Middle East at Ripple, said xRapid is coming next month.
If you are unaware of xRapid, the above image tries and fails to explain it. Fails because it tells us nothing of what goes on in that orange box.
Thankfully, Ripple was more clear in an April announcement when they stated three exchanges had been brought into xRapid. They say:
“Here’s what a xRapid payment flow will look like from the U.S. to Mexico:
- A financial institution, that has an account with Bittrex, initiates a payment in US dollars via xRapid which is instantly converted into XRP on Bittrex.
- The payment amount in XRP is settled over the XRP Ledger.
- Bitso – through its Mexican Peso liquidity pool – instantly converts the XRP into fiat, which is then settled into a destination bank account.”
In effect, you buy coins in one exchange, then send it to another exchange and turn it into fiat. Something so revolutionary that every cryptonian does it every day, albeit not necessarily with Ripple.
The second old news concerns a Saudi bank which apparently has joined RippleNet. Besides that news being old relatively speaking, this bank barely has five million customers, is hardly a recognizable name, and considering the many other bank partnerships Ripple has previously announced, it’s kind of non-news.
As for RippleNet, that’s the umbrella name for xCurrent, xRapid and xVia. xCurrent sounds to us like the messaging system for xRapid. As in A tells B they want $500 in XRP. Then there’s xRapid, where the XRP is bought, and then xVia on which both the XRP and the fiat moves.
Now sometime we are wrong and we do hope we are wrong in the above case because this groundbreaking innovation of buying coins in one exchange and then sending it to another sounds so utterly underwhelming, so let’s get to some more juicy stuff.
Some cheeky rippler posted some fake news at what looks like precisely the moment when Ripple’s price jumped. The very very naughty boy said “XRP Listed on Coinbase,” which isn’t true.
That however is not the likely cause because it became obvious in seconds that it was fake news, so another theory might be that pent up demand just left off some steam especially considering Bill Clinton is now to open the Ripple conference in just two weeks.
But that might not be it either, with our final theory relying on some objective data to point the direction of what may have bulled ripple:
ZB is a Chinese crypto exchange which has suddenly risen to top ripple’s trading pairs ranked by volume for the past 24 hours.
As much as PBoC wants China to be out of the crypto market, those entrepreneurial pioneers in Asia or of Asian origin keep innovating, with the “innovation” in this case being “free dividends,” aka an airdorp.
“Ultiledger World Premiere: 2 MILLION ULT Airdrop to CET, XRP holders & ULT traders,” Coinex said.
Coinex is a ViaBTC affiliated exchange which is opened to all but does have some sort of Asian roots. CET is Coinex’s token. ULT obviously is Ultiledger, which for now seems to be an eth token, but they plan to launch a public blockchain of their own which at a surface glance doesn’t seem to have much significant differentiation.
For some reason ULT has seemingly decided to reward XRP holders specifically. Because of that, rumors around say traders in China are shifting to XRP for the free muneh.
One data point that goes against our above narrative is the fact the airdrop announcement was made at 4AM London time, while the price movement came eight hours after that.
It is conceivable that they initially did not think much of this token, but then suddenly decided they want it, just as it is conceivable that perhaps it has nothing to do with any of it.
Because at the end of it all, our favorite theory may well be that this is markets being markets primarily for one reason. At 6AM, at 12PM, and at 4-5PM London time, price movements are usually those of traders being traders.
As in Europe, or Asia or America wakes up and buys or sells. With the price movement here being at 12PM this midd-day and with it being across cryptos, it may well be the case traders simply decided there has been a new higher low so a buy bet was worth it.
If the above is the case, then explaining ripple’s higher jump would be to argue they have fallen badly in the past 9 months, 95% or so, if not more. So if it is traders being traders then a more excited ripple jump initially isn’t surprising.
It could therefore just be kids being jumpy, in relief perhaps or in excitement, as some wonder whether a bottom has really been reached.