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Why Cardano, XRP, and Chainlink Tokens Are All Plunging Today

Why Cardano, XRP, and Chainlink Tokens Are All Plunging Today
Written by publisher team

What happened

Cardano (CRYPTO: NO)And XRP (CRYPTO: XRP), And chain link (CRYPTO: link) They reflect their lunar missions today and instead fall along the way. As of 1:18pm EST, they are down 12.81%, 17.68% and 18.39%, respectively, in the past 24 hours. This left Cardano at $2.48 per token, XRP at $1.14, and Chainlink at $29.05.

At this point, veteran crypto investors have seen just about everything, but they didn’t expect to blame Kim Kardashian for creating FUD (or fear, uncertainty, and doubt) surrounding the sector. On September 6, the head of the UK’s Financial Conduct Authority, Charles Randle, claimed that celebrities like Kardashian are putting retail investors at risk by luring them towards altcoins that could be scams. Earlier this year, Kardashian promoted a little-known cryptocurrency called Penny Arrow. Ethereum Max For more than 200 million followers on Instagram. As a result, the coin has lost more than 90% of its value since its May highs.

Businessman covers his eyes as he watches the bearish stock chart and the shadow of the ominous bear.

Image source: Getty Images.

so what

This move led investors to reconsider the underlying value behind their altcoins, and unfortunately for most digital currencies, cryptocurrencies have not caught up with the market cap. Take the case of ADA from Cardano, a non-existent virtual object that last year grew to become the third largest token in the world. Last month, Mike Novogratz, CEO of a leading crypto asset manager,… Galaxy DigitalIn a tweet, he said that none of the experts he consulted had seen Cardano gain any traction with the developers. Although Cardano still lacks smart contract functionality and, as a result, cannot create decentralized applications (dapps), its market capitalization has ballooned to over $80 billion. Moreover, there are concerns that the Alonzo upgrade, which will enable smart contracts and is scheduled for September 12, is not quite ready due to issues such as a lack of concurrent processing that is slowing down the network.

After that, XRP is the most vulnerable of the three to any regulatory scrutiny as its developer, Ripple Labs, is locked in a lawsuit with the Securities and Exchange Commission. The litigation itself relates to whether the sale of XRP to raise funds constitutes an illegal sale of unregistered securities, but this is not the main concern of XRP. The token rose to a market cap of $53 billion despite its interest being separated from RippleNet, a liquidity solution for financial institutions for cross-border transactions. So, it remains to be seen whether or not banks can successfully use XRP, not just enterprise software solutions from Ripple Labs.

Finally, Chainlink is at the forefront of integrating blockchain smart contracts with real-time data feeds such as asset price changes and retail payments. But skeptics question whether services such as providing decentralized exchanges with data about cryptocurrencies should actually have a value of $13 billion.

What now

Every year or two there is a new round of FUD in the crypto space that shakes up those inside it for a quick buck. In times like these, it is important to realize that the long-term value of cryptocurrencies continues to grow. For example, in 2018, Ethereum (CRYPTO: ETH) It had a huge market value but little benefit to its smart contracts. Now, the Ether token plays an integral role in creating decentralized applications, DEXs, decentralized finance solutions, and more, with a total accessible market of hundreds of billions of dollars. So unless one needs the cash right now, don’t panic selling.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of the Motley Fool Premium Consulting Service. We are diverse! Asking about an investment thesis — even if it’s our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

About the author

publisher team