Everyone who has been paying attention to XRP news would know that the price of XRP has been having some difficulty gathering momentum for a while now. The XRP price prediction 2019 has been negatively affected by the bear grip on XRP. Some digital asset investors on the XRP rich list now refer to XRP as a stablecoin because of its low volatility and inability to surge high amid a bullish breakout in the wider market. Now, a recent study on the price of XRP has revealed that XRP is overvalued and should be worth less than its current price per the report on Ethereum World News.
XRP News Today – Is XRP Overvalued? How Does This Affect The XRP Price Prediction 2019?
XRP is one of Ripple’s technology. Ripple, the Silicon Valley tech company, has the ultimate goal of reinventing and dominating the current financial system. Ripple is targeting cross-border payment which is the backbone of the financial system. This cross-border remittance system is currently being dominated by SWIFT. Ripple intends to take over SWIFT in the next few years. While this hasn’t happened yet, the company has made a lot of progress and gotten some recognition from top financial regulators and institutions including the World Bank.
Even if the price of XRP has suffered significantly over the last few weeks, one Twitter user has claimed that he conducted a research and revealed that the price of XRP is overvalued. In his argument, XRP was created to function as liquidity. If it is to be used the way it was created in the global foreign exchange market that moves up to $5.1 trillion daily, a unit of XRP would sell at $0.0043. In this case, XRP would serve only as liquidity and not as an asset for holding. The tweet was as follows;
“Why XRP is highly overpriced? Assuming its no. 1 use case is as settlement currency, and no one would want to hold on to XRP longer than necessary to reduce price risk, even a price of 0,0043 USD/XRP would be high enough to settle the entire FX volume of $5.1 trillion USD/day.”
The user claims that XRP is more or less a token for an airdrop. It is only required for xRapid but not needed for xVia and xCurrent. These two platforms are now popularly behind used by banks and other financial institutions for end to end tracking for settlements. Since xRapid was launched last October, Ripple has been able to get less than 20 financial institutions to use it. Also, banks are now creating their own internal cryptocurrency to rival XRP. The user believes that if these banks continue to provide their own solutions, XRP will eventually become useless.
XRP Price Prediction 2019 – XRP News Today – XRP SEC – XRP Faces Accusations
This isn’t the first time XRP is being challenged. There are many people who still believe that XRP is a security. They have refused to buy XRP or do any business with Ripple until the United States Securities and Exchange Commission clarifies the XRP security status and put an end to this XRP SEC saga once and for all. XRP and Ripple have risen above a lot of criticisms since inception and they’ve been able to thrive amid them. While the current price of XRP isn’t encouraging, there is still hope for the XRP price prediction 2019. Things will most likely get better before the end of the year.
What do you think about the XRP news today? Is the price of XRP overvalued? If it is, what does this mean for the XRP price prediction 2019? Share your thoughts in the comment section.