Welcome to the ccn weekly altcoin news update, where we examine important altcoin stories that have gone under-the-radar. This week’s issue examines the recent Ripple price rise and the astounding early success of the Ethereum project’s Ether sale.
Ripple Price Recovery?
The Ripple community has undergone significant turmoil over the past several months. In addition to speculation about internal dissension at Ripple Labs, the community endured a significant price decline after co-founder Jed McCaleb announced he was selling his entire XRP holdings. Within 48 hours of McCaleb’s announcement, the Ripple price had declined by more than 50% from $ .006 to $ .003. Members of the Ripple community established RippleTrak, a website designed to monitor McCaleb’s alleged XRP accounts once “Jedgemageddon” had begun.
The Ripple price decline continued throughout June and early July, as McCaleb liquidated a small portion of his holdings and investors lost confidence in the short term Ripple price forecast. The Ripple price reached a low of $ .00028 on July 6. However, the Ripple accounts ascribed to McCaleb ceased selling XRP—at least temporarily.
Once Jedgemageddon was placed on hold, investors became increasingly bullish on XRP. Ripple price speculation increased even more after Ripple Labs published Smart Oracles, a whitepaper detailing a smart-contract system with Ripple integration. In the wake of this news, the Ripple price nearly doubled from $ .0034 on July 17 to a pre-Jedgemageddon level of $ .0063 on July 18. Since then, the Ripple price has fluctuated between $ .005 and $ .006, according to CoinGecko.
However, investors should remain cautious on the short-term prospects of the Ripple price. McCaleb made it clear he planned to sell all his XRP, so it is likely he is waiting for the price to increase before he continues his sell-off. As soon as day traders see movement in McCaleb’s accounts, they will undoubtedly begin panic-selling, which will cause the Ripple price to plummet. At this point, you should only consider investing in Ripple if you plan to hold it for the long-term.
Ethereum Sells 10 Million Ether in 24 Hours
Ethereum, the yet-to-be-released distributed application software platform, recently began its presale for Ether, the fuel of its platform. Ethereum users will pay Ether to develop applications or use applications built on Ethereum. Ethereum established a fixed price of 2,000 ETH per 1 BTC, which will decline linearly throughout the 42-day sale. Within 24 hours of launch, Ethereum had sold more than 10.5 million Ether. At present, Ethereum have sold more than 13 million Ether, for a total of more than 6,500 BTC.
The Ether price will remain at 2,000 ETH/1 BTC until August 5, when it will increase to 1,970 ETH/1 BTC. The price will continue to increase until it reaches 1,337 ETH/1 BTC at the sale’s culmination.
If you are considering investing in Ether, you should keep a couple things in mind. First, Ethereum is still a work-in-progress, and your Ether will not exist until this winter at the earliest. Second, Ethereum does not plan to place a coin-cap on Ether, meaning that the number of Ether in existence will continue to inflate indefinitely. Additionally, the Ethereum purchase agreement stipulates that buyers are not purchasing Ether as an investment.
Have a news tip you think should be featured in next week’s altcoin news update? Send it to me at JosiahWilmoth@Gmail.com
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