It was a shocking day for the crypto market. Hong Kong released a list of authorized cryptos. Shockingly, the least does not have XRP on it.
Hong Kong has finally released its list of authorized cryptos, and shockingly, the least surprising name on the list is XRP.
This omission has severely affected XRP’s price point in the global market. As an immediate reaction, XRP’s price fell by $2.4.
While the short-term outcome of this omission can be managed, it does raise questions regarding the future of the most popular cryptocurrency assets in the world. It also questions whether there are any transparent criteria in the global financial system for digital assets to operate.
This XRP event is a reflection of the cryptocurrency market, which is far from stable, on the whole. The price of the token fell more than 15% after the decision of the Hong Kong government to exclude it from their eligible digital assets list.
There are mainly two reasons why Hong Kong showed a lack of interest in XRP. Global crypto investors are constantly guessing how regulatory moves will affect their portfolios. On that note, XRP is still on the path of evolution and development. Hence volatility and flexibility come with it by default. It dissipated the interest of investors. At the same time, institutional investors did not think it would be of investing in.
On the other hand, we have a new ETF upgrade for XRP. It is a credible milestone for the crypto firm. It also shows regulatory faith in the token chain.
However, it is not clear how much the ETF progress would help XRP. The present regulatory environment and the legal issues faced by Ripple are daunting. Therefore, there is hope but it is limited.
The biggest silver lining is that the ETF is already authorized. It will hence bring in a stream of new investments. Once those come in, the token’s price value will stabilize. After that, we can expect the long-term sustainability of this financial asset.
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