With all the recent controversies surrounding Ripple, Nic Carter, who is the co-founder of Coinmetrics and a partner at Castle Island Ventures shared a series of thread, condemning Ripple.
Ripple and XRP have been a controversial topic for quite along. While few members of the crypto community criticized XRP as a centralized cryptocurrency, Ripple’s official, on the other hand, elaborate XRP as the decentralized cryptocurrency runs independently on XRP ledger.
Did Ripple Create XRP or Discover it?
The concerning point here is that Ripple is a blockchain payment firm that offers payment products based on blockchain technology. Alongside these products, Ripple is also known as the parent company of XRP, the third-largest cryptocurrency by market capitalization.
Undeniably, when XRP bag holders backlashed Ripple for selling a lot of XRP – which they claim – has drastically reduced the price of the token, Ripple’s CEO and other key officials refute the claim.
In fact, they elaborated that Ripple and XRP are two different entities, while Ripple is a company, XRP is a decentralized cryptocurrency. Moreover, they also stated that the XRP cryptocurrency still exists even if Ripple, the company disappears.
With all these controversial comments since so far, Nic Carter who is the co-founder of Coinmetrics and a partner at Castle Island Ventures shared a series of thread, condemning Ripple. He said;
He also mentioned the comment of Ripple CEO Brad Garlinghouse who in an interview with Fortune Magazine compared XRP with Oil (though he compared it in the context of considering XRP as security would be wrong). It’s worth noting that during an interview when Brad doubted Facebook’s approach of launching Libra until 2022, he also shared his views on XRP ledger. He said;
One really important distinction is, the XRP ledger existed before Ripple the company. Certainly, we are an interested party in the success of the XRP Ledger, for sure- we own a lot of XRP. But its’ a little bit like saying, Exxon owns a lot of oil. That doesn’t make oil security.
XRP Community Defending Ripple
As Nic Carter’s tweets appear to be contrasting Ripple and the XRP community, it obviously captured the attention of the XRP army. However, as a response to a community’s comment that asked his view representing Ripple like Bitconnect, a Ponzi scheme which became popular in 2017, Nic Carter strongly urged that “it’s not “like” that; it is that.” He further said;
Ripple is no more or less useful than BCC. They just have better marketing.
On the other side of the matter, Tiffany Hayden who is the prominent XRP community member defended XRP, saying;
Moreover, she also quoted a tweet that Ripple CTO David Schwartz wrote about the existence of Bitcoin Cash. As David said he had Bitcoin cash balances that were transferred to him in 2015 however, in contrast, the token came into existence in 2017. In her continuous tweet, she explains her stance of how XRP has emerged;
Unfortunate 56% Ripple Flash Crash on BitMEX – Could it be Prevented?
After an awful 2019, XRP had just started exhibiting signs of recovery in January 2020. As of 13 February, the year-to-date return was close to 70%. And these promising stats seem to have enticed the traders to long the XRP/USD pair on all-crypto exchange BitMEX.
As luck would have it, the Ripple trade did not work in the trader’s favor. A presumable scam wick on BitMEX wiped out entire trader accounts and they lost all their holdings.
On 13 February 2020 at 9:00 ET, the price of Ripple (XRP) plummeted by 60% for a very very brief period. It plunged from $0.32 to $0.14 but recovered within a second. But by the time, the worse had already happened. The bet had gone wrong for many traders as the stops failed to execute on BitMEX. And they ended up losing everything they had on the exchange.
Till now there has been no sound explanation from BitMEX as to what exactly occurred. When the hapless traders contacted BitMEX, they were informed this was not an extraordinary event and their platform was operating fine. Thus, there would be no rollbacks or refunds.
The sudden crash and then a quick recovery suggests that it was a “fat-finger” or perhaps a trading algorithm glitch.
But we would want BitMEX to answer these questions:
- Who triggered such a big sell?
- MarkPrice was around $0.3. When the Ripple(XRP) price dropped to $0.1, if someone sold at $0.1 and established a short position, he should have huge unrealized PNL based on the mark price and very likely to be liquidated immediately. Especially when lots of retail users use mark orders to buy and sell.
- Conditional order that was triggered by LastPrice would also have been triggered unexpectedly. It is hard to believe no client took any loss.
We are still waiting for BitMEX to answer the questions.
In the meantime, Altcoin Buzz Team reached out to Jack Tao, CEO of the derivatives exchange platform, Phemex. We tried to understand how derivatives platforms can be better prepared for such situations.
What Phemex does to protect flash crash?
As per Jack, Phemex is well prepared to protect derivative traders from facing losses in such situations. Here are the preventive features:
- Phemex rejects orders if the price of the underlying asset goes beyond +/- 10% of the last listed price or +/- 15% mark price. With a capped Market order execution price, such unexpected slippage is avoided.
- Phemex sets a quantity limit on a single order. This prevents a “fat finger” to wipe out the entire book.
Phemex comes across as a highly-sophisticated cryptocurrency derivatives exchange that was launched on 25 November 2019. Headed by 8 former Morgan Stanley executives, it offers higher performance and reliability without sacrificing user experience.
In a short period, Phemex has acquired 35000 users and has recorded maximum trades volumes close to $400 million.
XRP Price May Head Towards $0.46 as Crypto Traders Turn Bullish
While the XRP price keeps fluctuating below $0.30, overall market sentiment regarding the coin remains bullish. Crypto traders anticipate various movements in the price in the short term but all seem to bet on XRP surging.
An analyst predicts the $0.46 price level, particularly, and even higher.
‘We can continue towards $0.46 and possibly $0.60.’
Dutch analyst Michael van de Poppe has dedicated a post to XRP, saying the situation will likely be okay for this crypto coin.
The expert points to a Support Resistance Flip on the chart saying that XRP needs to hold above $0.25 in order to keep rising to $0.46. The possible destination could also be as high as $0.60.
Image via Twitter
XRP expected to surge as the current chart resembles 2017
Twitter user @mrlevelup has shared a bullish view on XRP on his Twitter page. Showing similarities between a chart from 2017 and a chart from this year, he shows that the market is now at a similar point as it was back then, at which the XRP price surged.
@mrlevelup expects XRP to soar and provides details in a video he posted to the comment thread.
Image via Twitter
Weiss Ratings slams Ripple CEO
On Saturday, February 22, financial analytical agency Weiss Ratings published a post criticizing the head of blockchain giant Ripple. The agency bashed Brad Garlinghouse for saying the cryptocurrency world cannot function without banks and that getting bankers on board is crucial for crypto’s future.
Weiss Ratings supports the opinion popular in the crypto space that crypto is likely to replace banks. Their tweet is as follows:
“#Ripple CEO Brad Garlinghouse said that stressing compliance is key to getting bankers on board with #crypto. We don’t need bankers to get involved in the crypto. Maybe he and his company do, but the space doesn’t. Crypto doesn’t need banks, because crypto will replace them.”
In the comment thread, the XRP community showed their disagreement and began a heated discussion.
Image via Twitter
Ripple Price Analysis: XRP Could Dip Further Before Fresh Increase
- Ripple price is struggling to climb above the $0.2850 resistance area against the US dollar.
- The price is currently declining and it might test the $0.2645 support level.
- There is a key bearish trend line forming with resistance near $0.2805 on the 4-hours chart of the XRP/USD pair (data source from Bittrex).
- The pair must climb above $0.2805 and $0.2850 to start a strong increase in the coming sessions.
Ripple price is currently struggling below $0.2850 against the US Dollar. XRP price could dip towards the $0.2580 support before it might rise again towards $0.3000.
Ripple Price Analysis
This past week, ripple price found a strong support near $0.2645 and $0.2580 levels against the US Dollar. XRP/USD remained well bid and started a decent recovery above the $0.2720 level.
There was a break above the 23.6% Fib retracement level of the downward move from the $0.3078 high to $0.2621 low. Besides, the price surpassed the $0.2820 resistance area.
However, the price faced a strong resistance near the $0.2850 level. Besides, the price remained well below the 55 simple moving average (4-hours). More importantly, there is a key bearish trend line forming with resistance near $0.2805 on the 4-hours chart of the XRP/USD pair.
It seems like the pair failed to continue above the 50% Fib retracement level of the downward move from the $0.3078 high to $0.2621 low. Ripple price is currently retreating from $0.2850 and it is trading below the $0.2800 level.
An initial support is near the $0.2720 level. The first key support is near the $0.2650 level, below which the price could continue to move down towards the $0.2585 level.
Any further losses may perhaps lead the price towards the $0.2325 support area in the near term. Conversely, the price could bounce back from $0.2645 or $0.2585. An initial resistance is near the $0.2805 level and the trend line.
However, the bulls need to gain momentum above the $0.2850 level and the 55 simple moving average (4-hours) to start a convincing upward move in the near term. The next major resistance is seen near the $0.3040 level.
Looking at the chart, ripple price is clearly struggling below $0.2805 and $0.2850. Therefore, it could dip a few points in the short term, but it is likely to bounce back as long as it is above $0.2585.
4 hours MACD – The MACD for XRP/USD is gaining momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for XRP/USD is now just below the 50 level.
Key Support Levels – $0.2645, $0.2585 and $0.2400.
Key Resistance Levels – $0.2850 and $0.3000