After a terrible week last week, Ripple has extended the downward streak in Monday’s trade. Ripple is one of the most volatile cryptocurrencies since the start of this year. After rallying massively to an all-time high of $3.84 and claiming the second spot in the crypto charts with a market capitalization of $123 billion on Jan 4, the digital currency has now plunged almost 50% from its all-time high, while its market capitalization has reduced to $70 billion at present.
The digital currency opened the Monday session at $1.86 and has currently slipped back to $1.82, down 1.87%. It ended Friday’s trading close to $2.06.
Moreover, warnings from the Indonesian government over crypto trading has impacted crypto prices in today’s trade. The Indonesian government believes cryptocurrencies are providing a safe way for terrorism funding and money laundering.
The Central bank of Indonesia said, “The digital tokens are prone to forming asset bubbles and tend to be used as the method for money laundering and terrorism funding, so it has the potential to affect financial-system stability and harm the public.”
The Central bank comments are quite appropriate. Several other countries are also looking into this matter, as digital currencies are making it easier for the money launderers to transfer money from one destination to other. These initiatives clearly highlight regulators’ obscurity in managing digital currencies.
Ripple’s price failed to recover from several controversies it experienced last week, including the South Korean plan to take strict actions against anonymous cryptocurrency trading in their domestic markets.
Ripple trades at 30% premium in South Korea and it is among the broadly traded cryptocurrencies.
On Thursday, Justice Minister Park Sang-ki said, “There are great concerns regarding virtual currencies and the justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges.”
In addition, Ripple lost considerable value after CoinMarketCap decided to remove three major Korean exchange platforms from its calculations. On that day alone, Ripple’s market capitalization declined from $123 billion to $103 billion, a shocking drop of $20 billion. The digital currency founder blamed CoinMarketCap for a massive fall in the value.
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