Hackernoon logoThe XRP Crisis Is A Reminder Of The Bitconnect Days by@tran-hung

The XRP Crisis Is A Reminder Of The Bitconnect Days

Tran Hung Hacker Noon profile picture

@tran-hungTran Hung


Firstly, I would like to confirm that I am not a fan of XRP or Bitconnect. I hope you will find the objectivity of my deductions.

Looking back at Bitconnect crypto-lending platform 2017

In 2017 when BCC (bitconnect) reached the top-6 most powerful coins at coinmarketcap. Our company (Uquid) started to accept BCC as the payment method for our client with the belief that BCC will always maintain their position in the market.

(Disclaimer: The author of the is the CEO at Uquid)

But suddenly, the cease-and-delist orders from Texas and North Carolina securities regulators in January 2018 were served to BCC. Right after that, we contacted the BCC's representative and received a reply that the BCC will pass this difficult period.

Since Bitconnect coin is a decentralized currency, we decided to keep BCC listed and watched the price drop from $ 400 to $20 in under a week.

Then, came allegations of massive fraud and the people behind the BCC decided to go hide. The BCC delisting by mass exchanges followed which caused it to plunge again and hit new lows every passing hour.

Coming back to XRP; why do I mention Bitconnect?

Because BCC and XRP have a lot of similarities, of which, I believe the following two similarities are the most important:

- Has a strong support community. Up to now, no one can deny that XRP community is one of the strongest in the crypto world. and in 2017 Bitconnect has similar strength in community support.

- Top in ranking. Both BCC and XRP hit a high mark in coin rankings. This has a huge effect on the entire crypto market. The disappearance of BCC was a factor affecting the drop in bitcoin's price 2018.

And if XRP currently receives bad news, then the bearish confidence in the market that leads to bitcoin will inevitably affect.

XRP supporters argue that it's ridiculous to compare XRP to BCC (a coin that crashed in 2018). And I will point out the major differences that have helped XRP evolve until today.

- BCC builds community based on the ponzi scheme (although a lot of lessons in history have happened before). In addition to community building, BCC has not focused on bringing their coin to be used on external systems.

- In contrast, XRP's founders have a clear development orientation and XRP is also supported by many large organizations. XRP has been used in many coin payment systems for a long time because of its benefits such as being cheaper than bitcoin and also faster transaction speed.

Perhaps the issue people are most concerned with right now is the uncertain future of XRP.

Here are the possible scenarios:

1. The XRP exchanges will suspend or delist XRP

A suspension or delist is almost certain for those exchanges serving US customers or having a business in the US. We need to understand that the one thing that the SEC is a legal enforcement body and the advice they give will be almost an order by the time it is made public. It is possible that a body of authority higher than the SEC would later deny these recommendations. but for the time being it is still valid whether we dispute the right or wrong of the SEC recommendation. All parties accept or trading XRP in the US market must strictly comply (at least in the near future).

2. Exchanges outside the US

Other transactions that do not have coverage to the US will consider their interests before taking any action. They will consider the potential for continuing to trade XRP and the damage if delist XRP. Even if xrp's legal actions in the US fail, the impact on them is negligible because they are just secondary exchanges, they can simply stop all XRP transactions to their US customers.

3. XRP coin value will fall

In the short term, the price of XRP will plunge and major exchanges start to suspend trading or delist XRP will bring the value of XRP to the lows in its history of existence. But in the long run, the price of XRP may reverse if there is a market maker influence. And if XRP can overcome the legal charges, they could use the fund from selling XRP to stabilize the market price. Decisions to move the headquarters out of the US or to switch to a new token will also help revive XRP's value.

4. Declining Community

XRP community is the key factor to help me relive BCC. Both of them have strong supportive communities. As the BCC community grows, they gain immense support from the strong community. The majority of BCC leaders make money in their personal pocket by introducing investment plans to get new investors into BCC pyramid system. In XRP, otherwise, the XRP community has loyalty and solidarity. The chances of them turning back on XRP in case of bad news with XRP are still low.

It will take a lot of time to analyze the details and the risk of this comparison. I would like to summarize my predictions in the near future for #XRP:

Major exchanges will suspend or delist XPR for their US customers .
XRP price will continue to reach the lowest level in history for a short period of time. Traders will sell XRP and transfer the value to other strong coins like Bitcoin. This could leads to a sharp rise in the price of bitcoin.
In the long term, if there is interference from market makers, XRP will turn around and start to increase in price again.
XRP will lose a large number of customers, supporters, and XRP power will be difficult to return to market dominance as in the past.

Last but not least, the prosperity of the crypto market is heavily influenced by strong coins like XRP. we look forward to 2021 with more positive signals from XRP.

(Disclaimer: I am not a legal or investment advisor. you should do your own research for the risks)


Join Hacker Noon

Create your free account to unlock your custom reading experience.