South Korean cryptocurrency market is a relatively small percentage of the volume of global bitcoin trading, but played a crucial role in increasing market capitalization Ripple from $40 to $88 billion In 2017, the Ripple has become the most effective cryptocurrency asset, the exchange rate is increased to 360 times. Exactly a year ago, January 1, 2017, Aldon sold for 6 tenths of a cent. Now the Ripple token costs $2.29.
The Growth Of Ripple
Last week Ripple ahead of Ethereum, taking second place in the ranking of cryptocurrencies by market capitalization and became the first Aldona with a market capitalization of $100 billion.
Many investors, especially holders of bitcoin and Ethereum, stunned by such a rapid increase in Ripple. According to Forbes, analysts attribute this to the strategic partnership between SBI Ripple Asia and South Korean banks. However, involved in this partnership, banks will start to process transactions in Ripple only the end of the first quarter of 2018. This fact calls into question the version about the impact of partnerships on the incredible growth of the Ripple.
Ryan Selkis, entrepreneur-oriented Ethereum blockchain organizations ConsenSys, in an interview shared his opinion on the matter:
“I don’t know of any Bank that uses or will touch this, because this issue is controlled by a SV company, and 20% of all XRP belong to the founders. Product that Ripple offers to banks is just a tool of communication with some intellectual cryptography to guarantee atomicity of transactions. The model used liquidity is the same as the banks-correspondents. Some banks will have large pools of liquidity available for termination payments. The Ripple approach was the fact that the XRP tokens have been added to the listing of several exchanges, and then “withdrawn”. However, the project never explicitly stated that banks use XPR to resolve the relationship.”
For information about using the banks of the Ripple network to process payments is not entirely accurate. Earlier this year, the Swedish Bank SEB posted $180 million in the blockchain, Ripple, sending international payments on behalf of clients of high profile. Banks in Thailand and Japan, too, for many months spend almost instantaneous transactions using the Ripple network.
It is also true that no Bank uses Ripple blockchain to conduct large volumes of transactions on a daily basis.
The Role Of South Korea
Tony Liu, the founder of the Korean cryptocurrency exchange Korbit, said the New York Times that the South Korean market is exposed to the fear syndrome of lost profits:
“In Korea, the news spread very quickly. If someone invests their capital in a particular case, he wants the others followed his example. What is happening in terms of cryptocurrencies, it’s a massive, almost nationwide movement.”
For the last week of crypto currency exchange the South Korean market, including Bithumb, Coinone and Korbit, had more than half of the trading volume of Ripple, which amounted to about $4.5 billion in daily trading turnover.
In South Korea, this cryptocurrency is still sold at a premium. So, Bithumb Ripple trading at us $2.54, which is 24% higher than the average world price.
Speculation and cryptocurrency craze in the market of digital currencies in South Korea has become a serious problem for the government. Power trying to control speculation, forbade foreigners and minor investors to invest in cryptocurrencies.