When we (Baruch Crypto Club) met Ripple's Director of Markets, Miguel Vias (at a Baruch College event), he was adamant about not confusing Ripple with the XRP coin. So Miguel, forgive me for writing them next to each other in the title, but that's just how most people see it.
Here's the thing, XRP is a native coin that Ripple plans to use. But at the moment, there is no utility other than for speculation. Pay attention to his answers to my question (starts around 15:55 mark).
He explains that we trade and speculate and this does provide liquidity, although there are official liquidity providers as well who benefit from that service. (We speculators don't get any but get to speculate.) Next, there are hedgers in the game. The market is not just for speculators but involve other parties that benefit from the price being at a certain level. (This is my opinion).
- The speculation is 2 fold:
- 1) Whether other speculators will push up the price. (obvious)
- 2) Whether XRP will be adopted by banks. (not an actual driver at the moment)
- The second should drive the first, but sometimes price gains are fueled by merely rumors.
- Just last week, there were rumors that XRP will be added to Coinbase, which is RIDICULOUS.
- Nonetheless, it pumped.
- As we can see on the 4H chart, price was hanging around $0.90 for a couple of weeks before the rumors started to circulate.
- It didn't take long before Coinbase refuted those rumors. By the way, this is the second time they had to refute this rumor. Someone is persistently trying to fool people out there and I would be surprised if it was NOT a XRP-whale.
- Now, looking at the XRPUSD chart, we can see that price is back in the middle of the previous range, and actually approaching the support area.
- The fact that it is able to fall back into the bottom area of the consolidation suggests that the previous run up was a false one. This usually suggests subsequent downside.
- So I would anticipate a dip back towards the $0.75-$0.80 area, where price was a bit sticky back in February.
Finally, until they manage to convince banks to use XRP and they DO successfully start implementing Ripple's infrastructure, XRP will be no where close to being listed on Coinbase.