The first week of August has brought a wave of fear to the markets as over a trillion dollars were wiped from global markets, and cryptocurrencies also suffered. According to data from CoinMarketCap, Ripple’s XRP is down 9%. XRP is trading at 0.4806, having shed 9.42% in the last 24 hours. South Korean Upbit is the only crypto exchange that has XRP trading above 0.5.
XRP crashes alongside the broader market
Traders are left wondering if XRP’s slide is just a short correction or the start of a more prolonged bearish phase. Earlier this year, Ripple announced it would launch a stablecoin pegged to the US dollar. Ripple’s CEO, Brad Garlinghouse, said the product would bridge traditional finance and digital markets.
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The US Securities and Exchange Commission (SEC) criticized the stablecoin several months ago, labeling it an “unregistered crypto asset.” Ripple has not provided the official launch date, but many expect it will be up by the end of 2024.
Ripple USD (RLUSD) is being designed to maintain a constant value of one US dollar. Issued on XRP Ledger and Ethereum blockchains, Ripple USD will be fully backed by a segregated reserve of cash and cash equivalents and redeemable 1:1 for US dollars.
Ripple
There remains a question of how Ripple will get the stablecoin approved, which is much less appreciated by traders considering its long-standing battle with the SEC. In December 2020, the SEC sued Ripple for illegally amassing more than $1.3B by selling XRP in an unregistered security offering.
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Also Read: Ethereum tanks 21% amid Jump Crypto Sell-Offs
