In the dynamic world of cryptocurrencies, XRP, once a front-runner in the race for digital currency supremacy, has experienced a series of setbacks since its peak in 2017. This article delves into the reasons behind XRP’s underperformance, as highlighted by WrathofKahneman (WOK), a prominent figure in the XRP community, and other industry experts.
The Rise and Fall of XRP
XRP’s journey began with promise, reaching a remarkable price of $1.19 on December 21, 2017. This surge was short-lived, as the token experienced a dramatic fall to $0.35 by December 2018. Over the next few years, despite mild recoveries, XRP failed to match the growth trajectory of its peers like Bitcoin and Ethereum. The 2021 bull run, which saw other cryptocurrencies reaching new all-time highs, was a particularly telling period for XRP, as it only managed to climb to $0.94, far below its previous peak.
Root Causes of Underperformance
Negative Propaganda and Reputation Damage
WOK points to a targeted campaign 2017 where individuals were reportedly paid to spread fear, uncertainty, and doubt (FUD) about XRP, labeling it a “banker’s coin.” This centralization critique significantly tarnished its appeal compared to its more decentralized counterparts.
Legal Battles and Regulatory Uncertainty
A major blow to XRP’s credibility came when the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple, alleging an unregistered securities offering. This legal quagmire cast a shadow over XRP, leading to uncertainty and hesitancy among investors and developers.
Technological Limitations
Unlike Ethereum and other blockchain networks, XRP initially lacked features like smart contracts, which are crucial for speculative investors and developers. Though the XRP Ledger is evolving to incorporate these features, the delay has significantly affected its underperformance.
Community Response
Bill Morgan, a pro-crypto lawyer, expressed frustration over XRP’s weak price trend. Discussions within the community have often been polarized, with some members reluctant to acknowledge the issues plaguing the token.
Despite these challenges, XRP has shown resilience. Its underlying utility remains a strong point, particularly in cross-border payments and remittances. Introducing new features like Hooks aims to revitalize the platform, potentially attracting more developers and use cases.
