Breaking News / Cryptocoins / Ripple
SBI Holdings Using xRapid Within New FX Pairs Could Explain XRP Spike
Aug 02, 2018
XRP has seen some positive movements recently. Sadly, these haven’t really impacted the value of XRP, simply because these movements come off the back of a very negative few months for the currency and for the company, Ripple.
Ripple have been subject to a whole host of controversy that seems to be pointing towards allegations of securities fraud. Whilst this is still ongoing, it seems at the very least, the damage done by these allegations is finally starting to lift. XRP is moving up, and we want to know why.
One theory, is that SBI Holdings, who have recently launched new trading pairs within their FX trade platform, could now be using Ripple’s xRapid to facilitate the trades. We already know that Ripple and SBI Holdings of Japan are closely affiliated so this theory isn’t totally unrealistic.
xRapid is able to facilitate cross border payments at a ‘rapid’ rate. Through ‘on-demand’ liquidity, xRapid can cut costs and settle transactions in literally minutes. Because of this, the testing and potential use of xRapid by SBI Holdings really does make sense, it’s a no-brainer.
So, could this be impacting the price of XRP?
Well, according to AMBCrypto:
“The key takeaways from both theories are that the trading volume was set to increase on August 1st, which is when the new Forex trading pairs go live on SBI’s FX markets. The liquidity required for XRP use in xRapid would be sourced from SBI’s Virtual Currencies exchange. This also correlated with the ‘Synergy’ strategy mentioned in SBI Holdings’ report in June. Moreover, the trading facilitated by the SBIVC exchange would allow for the easy JPY to XRP conversion.”
“This was observed on Japanese and Korean Won pairs with XRP undergoing a large spike in trading volume during the evening of August 1st. This was coupled with the fact that the XRPCharts website did not provide data of the specified time. Even if the data was not properly provided, the event had an effect on the market. The price saw a movement of close to 6% spike during the same time frame. From a low of $0.42, the price saw an almost vertical climb to $0.45 in the span of 2 hours.”
See the full article for yourself, here.
This is speculative, but it does weigh up. The testing or use of xRapid could indeed be impacting the price of XRP.
For now, we will continue to watch the price of XRP. As the lawsuits against Ripple draw to a close and indeed, as we are seeing more announcements from Ripple themselves (for example the recent Bill Clinton announcement) they are setting XRP up for a rebirth. The new brand, new style and new stance of XRP could well cement a more positive future for the currency. We’ve just got to see the back of these legal proceedings first, that’s the nerve racking part.
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