XRP reaches highs and lows due to Reddit traders

Ripple managed to gain back the losses caused by the US Securities and Exchange Commission (SEC) lawsuit after XRP’s value soared to 50% last February 1 before falling again in just a span of a few hours due to a ‘pump and hold’ scheme run by Reddit traders.

Over the weekend, an army of amateur investors flocked to the Reddit discussion boards of r/SatoshiStreetBets and r/WallStreetBets and caused XRP’s value to rise from $0.28 until it reached $0.58 on Monday, February 1. This followed after XRP trended on the boards following the jump of GameStop shares at the tail end of January.

However, after the ‘pump and hold’ scheme, XRP’s price plummeted by 17.14% on the same day. The altcoin fell back to the 4th spot with a market capitalization of $16 billion according to Coin Market Cap.

Ripple remains optimistic despite hurdles

Last December, the SEC accused Ripple Labs and its executives of selling unlicensed securities in the form of XRP, causing its price to plummet by more than 70%.

However, despite the SEC’s attempts to regulate the cryptocurrency, Ripple is still optimistic about its trajectory this 2021. The San Francisco-based cryptocurrency company released a statement on their Twitter account saying despite the challenges of 2020, XRP still continues to grow in scale.

‘We experienced increased customer growth and traction in key markets, and saw incredible innovation from developers in the XRP community. Our team continues to serve customers and partner with industry pioneers who share our vision in enabling the Internet of Value, where money moves as efficiently as information on the internet,’ wrote Brad Garlinghouse in their official statement released on the Ripple website.

Ripple claims that they are laser-focused on continuing to improve their products to offer solutions that will not only help their customers ‘save money,’ but also help grow and scale their businesses.

‘Customer interest globally remains very strong—the team continued to close new customer deals at a rate of 2 per week, across more than 40 countries, 18 of which are new to RippleNet. Despite the SEC lawsuit filed against Ripple on December 22, we signed 15 new customers to close out 2020 with more customers than ever before,’ the statement claims.

According to them, Ripple will continue to use this momentum to move forward and serve their growing community. Additionally, Garlinghouse claims that the company is ready to take on the new year and the opportunities that it may bring to their team.

Alongside this statement, Ripple announced the launch of their new beta service, Line of Credit, on their official Twitter page. This will allow on-demand liquidity (ODL) customers to instantly initiate cross-border transactions using XRP.