Rpple News Today – For the past few days, the entire cryptocurrency space has been talking about the Ripple – MoneyGram deal and what it means for Ripple, XRP and MoneyGram. Just after Ripple sealed the deal to pay for a 10% stake in MoneyGram, the price of the XRP token surged along with the MoneyGram stock. While XRP only recorded minimal gains, the MoneyGram stock increased significantly for good reason. Per our previous XRP news and Ripple news, the MoneyGram stock closed at $1.45 on Monday but Ripple paid $4.10 per share on Tuesday. So, it wasn’t a surprise that the price surged. Now the tables have turned and the MoneyGram’s global stock is plummeting. What does this say about Ripple?
Ripple News Today – XRP News Today -MoneyGram Stock Rises And Falls
While the MoneyGram shares surged globally after the Ripple news about an acquisition, the price started to fall on Wednesday. Per our previous Ripple news the deal is going to allow MoneyGram to use Ripple’s xRapid protocol. The xRapid protocol, which uses XRP as liquidity, is the vehicle that will drive mass adoption of the XRP token. This is why the news about the deal led to a surge in the price of XRP.
Using the xRapid protocol, MoneyGram will be able to enjoy many of the benefits of XRP which includes low fees, fast transaction speed, elimination of intermediaries, etc. It’s true that the xRapid protocol is efficient. However, gaining global adoption has proven difficult. So MoneyGram’s move is certainly going to give XRP the boost it needs in adoption. It will also propel other financial institutions to look into XRP and the xRapid solution. Using xRapid highlights the value of XRP.
Now to the big question. Why did the price of the MoneyGram global stock fall shortly after surging? Well, the answer is simple. The fall in price is most likely as a direct result of profit taking from short-term investors. However, some analysts have suggested that the news about Facebook’s Libra token is contributing to the drop in the price MoneyGram’s shares.
Ripple News Today – XRP News Today – Increased Competition In The Digital Payment Space
In our previous XRP news, we noted that one of the factors that will hinder the long term adoption of XRP and xRapid is the increase in competition. In the beginning of the year, JPMorgan announced that it was releasing its own internal payment settlement layer. This week, Facebook launched a cryptocurrency that is meant to do everything XRP can do. The Facebook token has the potential to kick Ripple out of business. There is a possibility that this increase in competition is responsible for the fall in price.
XRP (XRP) Price Today – XRP / USD
More companies are beginning to integrate disruptive technologies into their business models. Rather than buy Ripple’s tech, many of these companies have decided to build it. Other providers of financial services need to up their game by integrating these new technologies if they want to remain relevant. One of the disruptive technologies that will impact the world is blockchain technology. It has limitless use cases and will change the world as we know it.
What do you think was behind the drop in MoneyGram’s shares? Share your thoughts in the comment section below.