XRP and Ripple have always been known to have an active community, on and off Twitter, with community members looking forward to the success of its ecosystem. The community seems to be putting up a good front, despite XRP’s price falling steadily. However, while some XRP enthusiasts continue to hang in there, others have lost hope and turned to other cryptos.
The two most notable members of the community are [or were] Dr. T and Tiffany Hayden. While Dr. T has been AWOL for almost half a year now, Hayden seems to be harbouring growing concerns about Ripple and the state of the XRP Ledger. In a tweet thread, Hayden revealed how not a lot of people, including “paying customers,” are running a validator and how this could pose a threat to the ecosystem.
Vaguely speaking, a PoW network like Bitcoin gets more decentralized, with more miners joining the network. Similarly, as a PoC network like XRP gets more decentralized, the more validators it has.
For long, people have said that Ripple controls the network since it owns a lot of validators, something that was briefly true until other people started running validator nodes. Lately, people have been noting that if this continues, XRP and XRP Ledger could face major setbacks in development.
Referring to the validator argument, Hayden tweeted,
“They [validators] have become a central point of failure, IMO. The exact thing we are supposed to be avoiding. No XRPL services with paying customers are running validators like we expected them to. We have to acknowledge this.”
In addition to the above “concern,” there is another growing concern about the beginning of the downfall of XRP, with respect to Xpring. An initiative set up by Ripple with a clear goal to “invest, incubate, acquire and provide grants to companies and projects run by proven entrepreneurs,” Xpring will “use the digital asset XRP and the XRP Ledger, the open-sourced, decentralized technology behind XRP to solve its customers’ problems in a transformative way.”
Recently however, the projects that are being invested in by Xpring have started to deviate from XRP, XRP Ledger and ILP, and towards their own goals. While this may be productive to the crypto-ecosystem as a whole, it is definitely not for the XRP ecosystem.
“It Ripple shutters tonight, the network won’t last long much longer.”
David Schwartz, the genius behind XRP ledger and the man speculated by many to be Satoshi Nakamoto, stepped in to alleviate Hayden’s concerns. Schwartz took a rather neutral stance and stated,
“There isn’t going to be a clear straight line between every Xpring investment and XRP. Some of them are going to be aimed at ILP which we believe indirectly helps XRP and some will be aimed at the crypto ecosystem generally… I would be much more worried if you see us not helping projects that you think could provide value.”
Hayden firmly believes that there aren’t a lot of customers running validators as of now, and that there isn’t any reason to believe that somebody will in the future. Leonardo DiCaprio said it best in the movie Inception,
XRP’s chart indicates return of a bullish pattern. Could the price of the coin re-visit $0.76?
The XRP’s price might have taken a hit over the past few days falling the Bitcoin dump. The coin has been moving towards stabilizing its price, but with the bears in the market, the recovery has been difficult. The short term prediction point towards a fall and rise trend in XRP’s price, while the long term prediction marks the return of an old fractal pattern.
Source: Trading view
On September 2018, the price of the coin had slumped by almost 60% causing the value of the coin to slip from $0.6132 to $0.2450. The coin made a half recovery before falling further to $0.2700, while the support was marked at $0.2530. However, falling these tremendous falls, XRP bounced back hard with 184% growth taking the price of the coin to $0.7644.
Source: Trading view
Similarly, a fractal pattern was observed with the current trend as XRP trades at $0.2661, as the support stays strong at $0.2530. The crypto has been falling for the past few days and according to Awesome OScillator has a strong bearish hold.
However, like September 2018, the trend reversal could be underway making the price of the coin cross the long term resistance at 0.4744. If the XRP price re-traces the fractal pattern to a T, its price could breach the resistance and touch $0.7644.
XRP’s price could slump further before breaching its immediate resistance at $0.27
XRP’s price saw a fall of 20.97% on August 14, and since then it has been trying to recover. XRP was subjected to high volatility of Bitcoin, but the short term predictions point towards a further fall of the third-largest cryptocurrency.
Shorter Time Frame: 1-hour
Source: Trading view
After the massive fall on August 14, the coin has been on a roller coaster ride and noted a rise of just 0.05% since. The price movement in the past few days gave rise to an Ascending channel, where the price of XRP may not have been contained completely between the parallel lines, but provide areas of support and resistance in the short-term. The breakout from the Ascending channel may cause the price of the coin to take a further dip reversing the trend into a bearish one, as opposed to the current bullish trend.
Source: Trading view
Although the 4-hour chart of XRP saw a formation of an Ascending triangle for the past few days. This may cause the price of the coin to break upwards, taking the price above the immediate resistance at $0.2744.
XRP’s price may note a fall in the one-hour time frame but might eventually, see a reversal in trend making the price of the coin go higher.
XRP records high “Hype-to-Activity” ratio as over-hyped coins record low trading volumes, GitHub activity
A recent report by The Tie.io highlighted over-hyped cryptocurrencies on Twitter, and the details are not surprising. Less popular cryptocurrencies with low trading volumes exhibited high “Hype-to-Activity” ratios on Twitter, a social media platform that has become a battleground for scam bots and FUD stompers of the cryptocurrency market.
The Hype-to Activity metric measured the hashtags [#] of tweets each crypto has per $1 million in trading volume, after a thorough investigation of 450 cryptos. The main highlight of the report was a high tweet volume to trading volume ratio for XRP, the third-largest cryptocurrency by market cap, while the ratio for other top coins remained relatively consistent.
Source: TheTie.io | Tweet Volume to Trading Volume Ratio
XRP’s Hype-to Activity ratio was significantly higher than other large coins, even after ignoring popular hashtags like #XRPCommunity, #XRPTheStandard, and #XRPArmy. When included, the Hype-to Activity ratio rises to 6.66. According to the report, around 33% of those tweets had the aforementioned hashtags.
XRP’s hashtag has always been a subject of controversy. Nonetheless, it has continued to win the hashtag war on Twitter. Numerous developments and partnerships on its platform can also be attributed to the enthusiasm in the XRP community which has continued to gain traction over the years. Many accounts are entirely directed towards the Ripple ecosystem for the XRP-hungry audience on Twitter and the platform has undoubtedly become Mecca for the XRP contingent, most of whom are extremely bullish on the cryptocurrency.
While hype is important during the initial developmental phase of a cryptocurrency, it does not necessarily suggest growth in the long-term. After the 2018 crash, many such “hyped projects” have died. Scam bots on social media platforms are one of the many things that the cryptocurrency industry is infamous for. And, even though it seems that most Twitter bots are innocuous, many people on social media have fallen victim to the hype and continue to be exploited by savvy scammers.
Strong on hype, weak in substance
TokenPay recorded the highest ratio of 911.1 tweets per one million in trading volume. Even GitHub activity was low for the “hyped” crypto. TokenPay had a Hype-to-Activity ratio which was 33 million% higher than Tether, a stablecoin which recorded a 24 hour trading volume of $21.99 billion, at press time.
Other over-hyped coins were lesser-known coins such as Electronuem, DragonChain, TelCoin, and DigiByte, all of which recorded low trading volumes and GitHub activity, but staggeringly high tweet volume.
The report further elaborated,
“In other words, TokenPay’s ratio of tweets/trading activity was 330,770X higher than Tether’s was… Just like trading volume manipulation, many of these coins are similarly being manipulated on Twitter by hoards of bot accounts, fake followers, and manipulated engagement.”