Crypto

Ripple price decline not really a decline

The recent 30{d3504fbcdeb81bdc8fcd95bbbe4a10927085f26f9c7d3b1ab66ca60ecac7168d} Ripple price decline isn’t actually a decline of such proportions as shown on CoinMarketCap because the site actually removed the trading price of Ripple on South Korean cryptocurrency exchanges from the global average calculation of Ripple causing a massive decline whereas the price was actually down by just 10 per cent.

CoinMarketCap’s removal of the South Korean exchanges was controversial and this is because exchanges over at South Korea are well-regulated and account for more than 50 percent of global Ripple trades over the past few weeks. The removal of the cryptocurrency exchanges from the price indicators brought down the prices of bitcoin, Ethereum, and other cryptocurrencies significantly.

This would give casual traders and especially newcomers a shock considering that the removal of the South Korean cryptocurrency exchanges led to a supposedly steep decline in Ripple prices. This led many to believe that a major correction has happened thereby leading to panic sell-off.

Ripple’s chief cryptographer David Schwartz wrote: “Coinmarketcap’s decision to exclude Korean prices from the displayed XRP price made the price appear to drop, likely triggering some panic selling. Look closely at the data and don’t be misled.”

Schwartz emphasized that the new price of Ripple, without the high premium rate of the South Korean market, is more meaningful. But, it has triggered a minor sell-off, as investors began to demonstrate concerns over the short-term performance of XRP.

While some experts and analysts believe that CoinMarketCap’s decision to removal the South Korean rates is beneficial for the market others believe that it led to panic.

The question about the rates from the South Korean market and whether they should be reflected on the global price of cryptocurrencies remains unanswered. While some experts believe it could make the ecosystem healthier, others believe that considering the sheer trading volume coming from the South Korean market, and strict regulations imposed by the government to regulate the sector, South Korean rates should be considered in calculating the global average price.

About the author

David Bizley

David Bizley

David Bizley has worked on Oilfield Technology. While performing editorial role, he also works as a contributor and is actively involved in the commissioning of material for both the magazine and its expanding online presence.

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