Digital assets are currently in mayhem as prices are crashing left right and center. The drop began with Bitcoin (BTC) dropping from trading above $8,000, failing to find a stable support above $7,000 and plunging into the $6,000. The drop was, however, not unique to Bitcoin, but affected virtually all the digital assets in the market, especially last week. Ripple XRP, for example, lost the support at $0.45 and has dropped further breaking another life-saving support at $0.30. At the time of writing, a pullback appears to be in progress above $0.25 support while the price is changing hands at $0.26.
To say the least, investors are getting concerned because at first experts and crypto enthusiasts alike thought that the falling prices were as a result of the U.S. Security exchange Commission decision to postpone the verdict on BTC ETFs. However, it appears that the slide is catalyzed by something totally different, but what could that be?
In the meantime, I came across an interview that Ripple’s Navin Gupta had with Chin Wei Min at Securities Commission Malaysia back in April this year. Gupta took time to discuss XRP price and its relation to the developments of the technology. And perhaps this interview will bring some reassurance to the investors and help everyone focus on the future of the token.
While responding to a question of where he sees the crypto industry and the digital asset in the next two to three years, Gupta made it clear that Ripple is focusing on developing the technology. He added that they (Ripple) are not being distracted by the current price.
“We need to make sure that the technology is state of art, we are building the ecosystem with banks, payment companies, exchanges houses, with the regulators to make sure that there is enabling environment to succeed. And then we will work on the inter-ledger protocol so that our blockchain will be able to speak with other blockchains. Because we thing in this world, there will be multiple blockchains that will become successful in their own verticals or in their own horizontal and the key thing is that they should be able to speak to each other.”
Gupta continued to say that the situation in the market is more or less demand and supply and Ripple does not take part in price action. He, however, said that the market is still young and that the volatility is still high, but as time passes, the digital assets will begin to experience stability. This stability will come with increase in liquidity, institutional investors, and products such as Futures and derivatives introduction.
In the interview, Gupta also assured the community that XRP tokens supply will not be increased. However, Ripple owns a certain amount of tokens but out of these tokens 55 billion XRP are in escrow. The tokens are released every month but if some tokens are not used, they are called back to the escrow account.
The information concerning these tokens, the market price of XRP and other aspects observed by Ripple is usually published in a quarterly report.