After Bitcoin e Dogecoin, now it's the turn of XRP to try the roller coaster of pump and dump. The token of Ripple it is in fact giving rise to a series of ups and downs, driven by the support of almost 300 thousand Telegram users. Which claim not to be related to the sub Reddit wallstreetbets (WSB), much less the Californian company.
The path of XRP was indeed quite sensational, especially in light of the sword of Damocles that hangs over the project, in the form of a lawsuit filed against Ripple Labs by the Securities and Exchange Commission of the United States.
What is happening
Over the last few hours, the price of XRP touched $ 0,75, and then dropped to $ 0,39. The group in particular favored the upward movement "Pump and Dump XRP", formed on Telegram in the wake of Reddit's WSB, under the guidance of a mysterious The XRP Bully. The group has joined as many as 200 thousand users, whose growth has evidently inspired another aggregate of users, t.me/pumpxrpofficial, in turn grown thanks to the sudden influx of 95 thousand people eager to exploit the enormous impact that characterizes these entities to their advantage.
The claims of The XRP Bully
Unlike what happened with the actions of GameStop, however, the Telegram group seems to have as its objective the support of XRP. That is of pumping the price without selling the token by return of post in order to capitalize on the operation.
It was The XRP Bully who underlined this, although in fact it was seen how many did not resist the urge to sell in order to make an immediate profit. The leader of the group then said that his aim is to highlight the value of the developers of XRP, considered by him to be the real asset of Ripple.
A thesis that probably won't appeal to that community crypto which, on the other hand, has long been affirming the substantial uselessness of the entire project and its correspondence exclusively to the desire for profit of Brad Garlinghouse and the lenders of Ripple Labs.
The secret of the SEC
All this happens while the SEC seems intent on moving forward on the path of a collision with Ripple. In short, the lawsuit for the sale of unauthorized securities will not be stopped, despite the company's defensive attempts. So much so that even the attempt of a preventive agreement made by Brad Garlinghouse to avoid redde rationem in the courtrooms seems to have had any effect.
The situation of XRP, despite the Telegram pump, is likely to return very critical soon. Especially if those who are investing in the token decide to profit from the position taken, leaving ideological issues aside.
Is the pump and dump set to revolutionize the cryptocurrency market?
In light of what is happening, more than one observer has however begun to wonder what could happen if the pump and dump becomes ordinary administration also in the cryptocurrency sector. Which is notoriously volatile even to a greater extent than other financial markets are. With sensational rises and falls which are now on the agenda.
A trend which could turn out to be negative especially if the institutional funds decide to withdraw their support, growing over the last few months.