Ripple’s dramatic price decline — a staggering 46% over a six-day time period — offers a stark reminder to investors and speculators: Not all cryptocurrencies are the same.
The stratospheric rise of Bitcoin over the past year has brought along a number of so-called “alt-coins.” Many of these alternative cryptocurrencies claim to offer investors more advanced technology than Bitcoin’s blockchain and have benefitted from the cryptocurrency craze Bitcoin created.
But amid the broad cryptocurrency selloff in recent days, Ripple’s fall has been the most dramatic, more than doubling the losses of Bitcoin.
Ripple’s token XRP, which had been trading at around $3 at the start of this year, now sits below $1.70, according to the exchange bitstamp.net.
“There is limited upside in Ripple,” argued Alexander Kravets, a former Wall Street trader and creator of Xtrade.io, a cryptocurrency trading platform. “It’s very overpriced and the smart money has sold at $3.”