HomeCoinsRippleThe Rise and Falling Ripple is a Case Study in Worldwide Hysteria

The Rise and Falling Ripple is a Case Study in Worldwide Hysteria

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Ripple was the cryptocurrency darling in late 2017 and early 2018. It couldn’t get enough coverage in the mainstream media, South Koreans couldn’t get enough of it, and crypto newcomers couldn’t get enough of it. However, cryptocurrency moves at a breakneck speed, and ripple’s fall has been as swift as its rise. Now that the dust has settled and the hype has died down, a look back reveals the mass hysteria that accompanied ripple’s rise and fall.

A Case Study in Collective Obsessional Behavior is Ripple.

A group of nuns in a French convent began randomly mewing like cats in the Middle Ages. In Strasbourg in 1518, the Dancing Plague caused people to pass out from exhaustion after gyrating for days. A laughter epidemic broke out in a Tanzanian girls’ boarding school in 1962.

In late 2017, the rest of the world realized that ripple was a valuable commodity. As ripple’s market capitalization grew, there was speculation that it would eventually overtake bitcoin as the world’s most popular cryptocurrency. The sequence of events that contributed to the rise and fall of XRP can be seen by looking at the timeline.

Stagnation is the first phase

Ripple was the cryptocurrency’s great sleeper until two months ago. Because of the large number of XRP in circulation and its large market capitalization, it was always in the top ten cryptocurrency rankings. Traders despised it, dubbing it Cripple, while decentralization purists objected to XRP for ideological reasons, claiming it wasn’t even a cryptocurrency.

Ripple has been in a long slump since briefly surging in May. XRP traded between 16 and 26 cents between August and December 2017, while other altcoins grew at an exponential rate. Ripple’s time seemed to be slipping away. Then, on December 9, XRP started to rise.

Take-off is the second phase.

Between December 9 and 16, ripple rises 366 percent in a week, from 24 cents to 88 cents.

“Is XRP The Next Crypto Rocket ‘To The Moon?'” Forbes asks on December 13th.

XRP CRYPTO ROCKET

Enthusiasm is the third phase

From December 17 to 22, ripple rises from 76 cents to $1.19, a 160 percent increase in less than a week. In just two weeks, the coin has increased by 500 percent.

12/17: “3 Reasons Why Amazon Will Choose Ripple (XRP) in 2018,” according to Oracle Times.

“Bitcoin Is So 2017 as Ripple Soars at Year End,” writes Bloomberg on December 22.

Phase 4 Greed Ripple

ends the year on a high note, rising 188 percent from $1.19 on December 23 to $2.24 on December 29.
“Is the Centralized Ripple Database With the Biggest Pre-Mine Really a Bitcoin Competitor?” asks News.bitcoin.com on December 30.

Delusion is the fifth phase

Ripple is off to another strong start in the new year, rising from a low of $1.93 on December 31 to an all-time high of $3.86 on January 4.

01/02: CNBC educates its readers on “How to Buy Ripple, One of the Hottest Bitcoin Competitors” in a soon-to-be-famous feature. On the same day, Forbes’ Laura Shin reports that two of Ripple’s founders have become billionaires, with Chris Larsen ranking as America’s 15th richest man. Meanwhile, anecdotal evidence suggests that office workers, mothers, manual laborers, and a wide range of other people with no prior knowledge or interest in cryptocurrency are asking about ripple.

01/03: News.Bitcoin.com reports that ripple’s market cap has surpassed bitcoin’s by 40%, raising the prospect of “The Rippening.”

01/04: News as ripple reaches a new high.

Ripple Gateways Can Freeze Users’ Funds at Any Time, according to Bitcoin.com. Ripple’s chief cryptographer David Schwartz is enraged, and he responds on Quora by saying, “Ripple is not a gateway, and only gateways can freeze.” So that’s what the title of the article said.

On the same day, the New York Times’ Nathaniel Popper publishes a negative Ripple feature, quoting Ari Paul as saying, “I’m not aware of banks using or planning to use the XRP token at the scale of tens of billions of dollars required to support XRP’s valuation.” “Even virtual currency analysts who believe in Ripple’s software have said there is a big difference between Ripple the company and Ripple the token gaining enough traction to justify current prices,” Popper concludes.

Phase 6: A New Perspective

Ripple drops slightly over the next four days, but by January 8, it is still at $3.36, up 1,400 percent in a month.

01/05: Coinbase denies rumors that it plans to add new assets, putting an end to the possibility of XRP being listed.

01/07: The Express describes ripple as “the exciting new cryptocurrency that has sparked interest from crypto investors,” and the Financial Times describes it as “the exciting new cryptocurrency that has sparked interest from crypto investors.” “Is it better to invest in XRP than Bitcoin?” it asks in another piece published the same day.

“Ripple claims to have signed up over 100 banks, but the trouble is none of them seem to be using XRP tokens for money transfer,” writes News.Bitcoin.com on January 8. Supporters of Ripple aren’t amused.

Denial is the seventh phase

Over the next week, ripple starts to fall and then continues to fall, reaching a low of 89 cents on January 16 as the entire crypto market plummets. It’s now down 430 percent from its peak of 12 days ago, and it’s no longer the second most valuable cryptocurrency.

01/10: The Express asks, “Why is XRP falling so fast?” three days after touting ripple as a bitcoin competitor. “What’s going on with Ripple?”

01/11: The announcement that Ripple has signed an agreement with a money transfer service causes XRP to rise 20% before falling back as it becomes clear that Moneygram is only testing ripple in one location.

01/16: Forbes reports on ripple’s decline, citing one analyst as saying, “You couldn’t turn on your TV last week and not hear about XRP or its CEO…

The pullback began after Coinbase announced they would not be adding any new assets. Everyone is now continuing to profit.”

“That CNBC pump is going to be stock footage in every documentary they make about 2018 for the next 50 years,” one commenter writes.

Return to Normal (Phase 8)

Ripple claws back some of its losses as the crypto markets begin to recover, reaching $1.43 on January 21. It’s still up nearly 600 percent since the beginning of December, but it’s down about 60% from its peak. “Early adopters” who purchased XRP a month ago are making money, but the masses who bought at the peak of the mania are losing money. The mainstream media has stopped covering ripple, and housewives have put their plans to invest in “the next bitcoin” on hold.

01/18: According to the Financial Times, “we spoke to 16 banks and financial services companies publicly linked to Ripple.” The majority of them hadn’t progressed past the testing stage… “None of the banks that spoke to the Financial Times had ever used XRP.”

It’s unclear where ripple will go next, though the Classic Stages of a Bubble.

The reality may be more mundane: ripple is unlikely to vanish, but it is also unlikely to cause concern for bitcoin’s market cap, which is now 3.5 times that of the centralized pretender that, for three heady days in January 2018, looked like it might actually be capable of achieving The Rippening. Ripple could see another surge if it can finally persuade a major bank to use XRP for more than just testing purposes. However, the heady days of $3+ ripple seem like a lifetime ago right now.

Ripple isn’t the first cryptocurrency to be hyped to infinity, and it won’t be the last. In the annals of cryptocurrency history, ripple will rank alongside the dancing plague and the laughter epidemic as a textbook case of mass hysteria.

Do you believe ripple has reached its peak, or do you believe there is still room for XRP to grow? Please share your thoughts in the comments section below.

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