XRP– the cryptocurrency also incorrectly referred to as Ripple saw a substantial spike last week. But the massive spike also caused the crypto, when it’s trading value was at $0.46, to fall by over 18% at around 8:25 am on Tuesday.
After a report published by CNBC last week about the company Ripple (that holds the bulk of XRP) planning to launch an XRP based product in the coming few months, the value of the cryptocurrency soared to $0.69.
Ripple is a leading fintech organisation that utilizes the revolutionary blockchain-based payment methods to transfer money all around the world in a faster and secured manner. Also noteworthy is the fact that XRP is independent of Ripple, though the company holds majority of the crypto, but can be used on any Ripple platforms.
The product xRapid is designed to speed up bank transactions using XRP and the team has been making great progress towards the completion schedule. This was conveyed by Sagar Sarabhai, the regulatory relations head of Ripple for Asia-Pacific and Middle-East. He also added that in the coming few months there would be much awaited good news as the product launch date approaches.
Post the spike that XRP witnessed on Friday, its value has been falling continuously by over $9 Billion- a drop of over 30% since the spike. Apart from investors raking in profits, there does not seem to be any visible catalyst that can prevent or halt the downslide.
In the price-rise boom of the cryptocurrencies seen at the end of 2017, XRP too basked in its glory but has fallen drastically by around 90% since attaining its highest peak in January.
Ripple has had major deal agreements signed with financial giants such as Santander and American Express. However, these deals which pertain to a different product, xCurrent, has not helped XRP get a firm footing on its value depreciation. xRapid may be the much-needed salvation for XRP. xRapid is designed to let XRP be used as a gateway between different currencies thus letting banks and other fintech institutions to initiate and execute cross-border transactions in a much faster and secure way. Western Union and MoneyGram are two companies that have already tried the product.