Ripple Is Trading at Less Than $1. Does That Make It Worth Buying?

Ripple was one of the hottest coins on the Street.

In 2017, it was one of the best performing crypto currencies of the year.

In fact, after running from an October 2017 low of 20 cents to a high of $2.43 in January 2018, many expected for it to double, if not triple in value short-term.

Instead, it plummeted to less than $1.

One of the reasons for that is that investors are becoming aware that the company, its block chain technology, and the currency are all separate entities. In short, when you buy the XRP currency, you’re not also investing in the block chain technology.

Another key reasons for that is the idea that crypto currencies are now facing calls for greater regulation because there is little in the way of protection for investors.

In the UK for example:

"The Treasury Committee will look at the potential risks that digital currencies could generate for consumers, businesses, and governments, including those relating to volatility, money laundering, and cyber-crime,” as quoted by Express.  "We will also examine the potential benefits of cryptocurrencies and the technology underpinning them, how they can create innovative opportunities, and to what extent they could disrupt the economy and replace means of payment.”

Another problem that some investors have with Ripple is that it’s centralized, meaning it relies on a centralized institution for survival.  In this case, Ripple owns RippleNet, which owns a good chunk of the total amount of XRP coins. 

Ripple fell even lower after speculation died that it could be added to Coinbase.

In fact, according to a Coinbase tweet:

“Our January 4th, 2018 statement continues to stand: we have made no decision to add additional assets to either GDAX or Coinbase.  Any statement to the contrary is untrue and not authorized by the company.”

However, even with a great deal of negativity, there are arguments for potential upside.  For example, Ripple just added new clients, including Itaú Unibanco, IndusInd from India, InstaReM from Singapore, Beetech from Brazil and Zip Remit from Canada.

The company also argues that its xRapid platform could be a major catalyst, too.

According to XRP CEO, Brad Garlinghouse:

“What xRapid allows you to do,” Garlinghouse said, “is to have real-time liquidity. The Bank of Andy can sell $1, buy XRP. That XRP can then be moved to an Argentinian digital asset exchange, you can sell the XRP and buy an Argentinian peso, and now you have good liquid funds in less than 10 seconds in another market.”

Technically, in early March 2018, Ripple was consolidating at $0.914.  As long as that line does not break down, an argument for potential upside could be made with a great deal of negativity already priced in.