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More than £6.8 BILLION wiped from Ripple XRP value after spike
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More than £6.8 BILLION wiped from Ripple XRP value after spike

The digital token tanked from a peak of $0.66 last Friday to just $0.46 today – a drop of more than 30 percent.

The slump in price comes after XRP saw a dramatic rise last week following reports that Ripple, the company behind the digital asset, could be close to launching a new product which would help banks speed up international transactions.

But after last week’s spike, which saw investors pile into the world’s third most popular cryptocurrency, the price dropped as suddenly as investors took their profits.

At the time of writing, XRP was trading for $0.458 with just over £13.8bn ($18.2bn) invested in the cryptocurrency around the world, according to Coinmarketcap.

The surge in market capitalisation was driven by reports Ripple’s new xRapid product could be ready “in the next month or so”.

The process is designed to allow faster and cheaper international monetary transfers, according to Ripple, reducing the time it takes to move cash between countries by converting the cash into XRP.

Sagar Sarbhai, the firm’s head of regulatory relations for Asia-Pacific and the Middle East, told CNBC last week: “I am very confident that in the next one month or so you will see some good news coming in where we launch the product live in production.”

Ripple’s xRapid is designed to make use of XRP to speed up international bank transfers.

Once a payment is initiated, the technology would covert the currency into XRP, transfer the tokens to the foreign account, and then convert them back into the desired receiving currency.

Ripple’s work has already piqued the interest of major banks, including Santander, American Express and Japan’s SBI Group.

The XRP token was one of the cryptocurrencies which experienced huge gains towards the end of 2017 and start of 2018.

Ripple jumped in value by more than 49,500 percent between January 2017 and the same month this year, from a starting price of less than one US cent per token to highs of more than $3.30.

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