The cryptocurrency market has been in a slump since the start of the year, with most coins trading well below their all-time high prices. XRP reached its height of $3.84 in January 2018, but is currently trading at around $0.32.
In order to overcome this hurdle and reach $1, XRP will need buy back enough tokens on open markets to provide a strong economic incentive for traders to invest in the currency again despite the crash’s aftermath and uncertainty of what comes next amid regulatory developments such as China’s ICO ban; while also attracting major interest from institutional investors like hedge funds who have yet to enter the sector.
$1 would be around 100x XRP’s current market cap of $30 billion, which is why it would be such a landmark achievement for the coin and help put it on the map in traditional financial circles.
To buy back 1 billion of its own tokens at $0.01, Ripple would need $1 billion in revenue, which is a difficult number to reach. However, if XRP’s total market cap doubled from its current value of $30 billion to $60 billion again (less than 9 months) as it experienced in 2017, Ripple could target a price of $0.02 ($120 million) per coin by the end of 2018. This would require around 27% growth from the end of 2017 and would be a more reasonable figure and much more achievable for investors provided Ripple continues with its strategic plan for 2018-2019 across the board.
You can do this through an institution such as a hedge fund or an exchange, with the caveat that the trade volume is regulated by these platforms. Alternatively, you can also buy or store coins that are available in your country of residence with fiat currency. In addition, if you are a cryptocurrency trader, then XRP can be traded on most major exchanges and is available on CoinMarketCap as it is listed on Coinbase and Binance as an asset (not paired) with BTC and USDT among other options.
Ripple’s business model revolves around selling tokens and providing payment services to institutions that want to save on transfer costs. It also has a large following of investors and uses XRP as a bridge currency for cross-border payments. Should the company be able to increase its market cap, it would be in a better position to provide further services and products. However, this would take time, since Ripple is not yet listed on any major stock exchanges, which would be necessary for the company to develop new revenue streams.
In order for this scenario to happen, users need access to fiat currencies that are not subject to regulation or limitations from central banks (e.g. USD, JPY and CNY) in order to purchase XRP. The company is still developing this strategy with the expansion of the xRapid ecosystem.
Ripple is a relatively new company whose value proposition lies in its ability to provide institutions with a faster and cheaper way to settle payments. However, most large financial institutions already have their own systems in place and are unlikely to switch over to new software that they do not use or understand, no matter how convenient it is.
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