XRP: How a Technology Advancement Spiked a Cryptocurrency
On September 19, 2018, at 9:02 AM (CST), CoinDesk, a news site specializing in bitcoin and digital currencies, tweeted that PNC Financial Services Group, Inc.’s (PNC) Treasury Management division was soon going to accept cross-border transactions using Ripple’s xCurrent product. As a result of this announcement, on September 21, 2018, at 10:04 AM (CST), the price of $XRP — a crypto built on Ripple’s technology had skyrocketed up by more than 100% to a rate of $0.01653 with its market cap crossing $27 billion.
Tweet From CoinDesk on September 19 Regarding PNC’s Adoption of Ripple’s Product:
$XRP Prices Spike Following the PNC Announcement:
Prices are estimates based on publicly available trading data at or near the times indicated.
Let’s take a step back to understand some key terms about this news:
· Ripple is a company that aims to speed up cross-border payments. They have partnered with more than 100 banks and provide a range of money transfer services using blockchain and cryptocurrency.
· XRP is the cryptocurrency created by Ripple. It was not used by banks until the recent announcement of the xRapid service, which uses $XRP for money transfers.
· xRapid is the technology created by Ripple, which aims to boost the financial liquidity of cross-border payments. It is also expected that xRapid will assist in making border payments easier, cheaper, and faster. Most importantly, it uses $XRP to settle the money transfer.
· xCurrent is another technology created by Ripple which enables banks to instantly settle cross-border payments with end-to-end tracking. This technology, however, does not use the $XRP coins.
On September 17, 2018, Sagar Sarbhai, CEO of Ripple, announced in an interview with CNBC that xRapid — a cross-border payment system using $XRP as its intermediary currency — will be going live “in the next month or so”. @CNBC broke this news via Twitter.
Why Was This News Important for the $XRP Trader?
Say for example, that a bank wanted to transfer money from U.S. dollars to Japanese yen. With xRapid, banks can gain velocity by converting the U.S. dollars into $XRP tokens and then move the money overseas before converting it back into Japanese yen.
Let’s assume xRapid replaced only 1% of the current international bank transfers, making the daily volume of $XRP increase by 250 times. This was the moment that most $XRP holders were waiting for. If banks were to adopt Ripple’s product, the volume (and price) of $XRP was likely to increase dramatically.
Market Moving Tweets
Although the product was finally launched on October 1, there were tweets moving markets between September 17 (the date the news about product launch was first announced) and October 1 (when the product was actually launched). This is where TweetTraders would have played a key role in helping the trader understand key shifts in the market with the help of real-time alerts.
One major tweet as mentioned above was when CoinDesk broke the news about PNC and its adoption of Ripple’s technology — xCurrent. The fact was that PNC had not even hinted at future use of xRapid (the service which actually used $XRP coins for money transfer).
However, the market reacted to this news. The reason being that adoption of xCurrent was considered a stepping stone by Ripple in order to get banks to eventually use xRapid — its liquidity product that uses $XRP.
Ripple’s product management senior vice president, Asheesh Birla, said xCurrent is “A way to get their toe into the water.”
Setting a simple alert in TweetTraders to catch this profit opportunity would have been simple.
1) Selecting Crypto: XRP
2) Entering Keywords: Ripple, xRapid, product (after the news on September 17)
This would have given any trader insights in real-time about what the market thought of Ripple’s new technology. As with any trade, it is important for the trader to use this information with all other sources as one part of the profit-making puzzle.
If you want an app to keep a track of updates on any crypto or stock, you can sign-up to be on the early waitlist of our app — TweetTraders. We are offering the full power of the TweetTraders platform for free to users who participate in our beta launch and agree to provide feedback on the application.
As explained in our previous articles, through our app’s easy-to-use interface, users can quickly validate trading strategies related to how news can impact stocks or cryptocurrencies and set up real-time alerts for actionable insights that lead to profit. More importantly, with historical data down to the minute, TweetTraders improves trade execution by giving insight into when to buy or sell based on past trends.
Kernel
TweetTraders is powered by the Kernel platform. Kernel is a streaming data integration and rapid application development platform built by Ennate that allows you to make complex data-driven apps 10x faster. For more information on the power of our data connectors and lower-code application development process, visit ennate.io.
Thanks to Robert Naidoff, Mara Calvello.
