Ripple CTO David Schwartz Debunks XRP ATH Myth, Unveils Truth about Kimchi Premium

Ripple CTO David Schwartz was engaged in a dialogue with an XRP enthusiast about whether the $3.84 price level achieved in January 2018 was indeed an all-time high for XRP or not.

Ripple CTO David Schwartz has stepped in to clear the air after an XRP enthusiast shared an interesting observation about the token’s all-time high (ATH) price.

While discussing XRP’s price movements, an enthusiast shared that the token’s ATH was not $3.84 as reported, and suggested asking Schwartz about it.

In response, Schwartz confirmed the enthusiast’s statement, adding that $3.84 was ‘often reported as the all-time high,’ but you couldn’t actually sell XRP for $3.84.

This high price, he explained, included the ‘inflated amounts due to the use of "official" currency exchange rates for Korean exchange rates.’ He also attached a link that further explained the term “Kimchi premium.”

The term “Kimchi” refers to the cabbage dish that is a staple in South Korean cuisine. Since Bitcoin and cryptocurrencies are decentralized assets, unlike stocks, they can be traded at different prices on different platforms.

When it comes to South Korea, crypto prices are usually much higher than on exchanges in other parts of the world. This difference in prices is often referred to as the “Kimchi premium.”

As for XRP, the coin soared by 16% over the last 24 hours, reaching the $3.19 level. At the time of writing, XRP was trading at $3.10.

The coin’s surge came amid rumors that the Securities and Exchange Commission might start dropping some crypto cases pending in courts.

The rumors follow the departure of SEC Chairman Gary Gensler, whose last day in the office was on January 25.