In a striking event, XRP saw a brief, but electrifying surge to $50 on the well-known crypto exchange, Gemini. For a fleeting few minutes, the might of XRP’s market capitalization skyrocketed towering into the trillions of dollars. This unusual surge manifested at 20:30 pm UTC last Thursday. But as fitfully as it rose, it collapsed back to a level par with spot markets across various other exchanges.
This price hiccup could likely be attributed to the dry spell of liquidity experience in the wake of relisting XRP on Gemini, a scenario that possibly coaxed a buyer into making an unusually large market order. Ironically, this order was fulfilled at an eye-wateringly high price. Consequently, XRP found itself trading at higher levels compared to its market peers, albeit only for a scant few hours.
Market pundits pose a theory that a seller may have comically placed a spoof order at a staggering $50 per XRP, an error that found its way to a buyer who could have bungled the trade. Looking at the market depth data, it’s clear XRP liquidity on Gemini is still in the shallow end. It would take nothing more than a $37,000 order to jiggle prices by 2% on the exchange. By way of comparison, it would take a massive $2.2 million on the equivalent platform, Binance, to effect the same price swing.
This incident came after July’s court order favoring Ripple Labs. The judges on the case decreed that XRP’s “offer and sale on digital asset exchanges did not qualify as offers and sales of investment contracts”, thereby debunking previous allegations of Ripple Labs selling XRP (a deemed security) to US clientele without proper registration with the US Securities and Exchange Commission (SEC).
Article pen down does find XRP trading at a mere 63 cents, a sobering reminder of the chaotic, yet riveting, points of interest that have sparked differing views among followers of crypto markets. While these sudden price sprees showcase the potential that lies within blockchain technologies, they also underline the need for greater stability and regulatory measures within the fast-paced world of cryptocurrencies.
Source: Coindesk
