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May 8, 2018

Ripple: CoinMarketCap ‘Artificially Erased’ More Than 19% of XRP Value

By Daily Hodl Staff

Ripple recently released a report on XRP, recapping the major movements of the coin in the first quarter of 2018.

The report details the market value of all the XRP the company sold to institutional market-makers and financial institutions.

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“In Q1 2018, market participants purchased $16.6 million directly from XRP II, LLC – our registered and licensed money service business (MSB).

…Additionally, the company sold $151.1 million worth of XRP programmatically, as a small percentage of overall exchange volume. These sales represented 0.095 percent (9.5 basis points) of the $160.0 billion traded globally in XRP in Q1.”

Ripple also looks back at a significant move that upended the markets back in January. That’s when CoinMarketCap abruptly decided to remove South Korean exchanges from its pricing index, which rocked XRP’s boat in a real way.

“The change artificially erased $100 billion in market value, which resulted in significant market turbulence.

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While it impacted all digital asset prices, XRP’s relatively high share of volume from the South Korean market meant its displayed price dropped disproportionately versus other top digital assets. XRP fell 19.1 percent versus an average of 7.2 percent for the other top five digital assets by market capitalization on Coinmarketcap.com’s index price.”

The report also takes us through the way back machine to a series of other moments that helped send the crypto markets into a downward spiral earlier this year.

From rumors of a total ban on crypto in South Korea, to China’s tightening of the belt on ICOs and digital currencies, to the investigations on Tether’s reserves and forensics on the $532 million hack on the Japanese exchange Coincheck, the year in crypto has been episodic and volatile.

The report ends with an overview on regulatory movements that Ripple supports. From the G20’s announcement that it will analyze ways to regulate without stifling innovation, to moves made in Mexico, Europe and the UK, Ripple says it’s ready for the passage of a “thoughtful regulatory framework.”

You can check out the full report here.

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Related: Ripple Faces UK Parliament on Volatility, Security and Benefits of Crypto

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