XRP stands firm after JP Morgan's ripple with bank-centric cryptography


Ripple and its favorite cryptographic asset, XRP, have long been a nuanced topic in the cryptosphere. Many have argued that the San Francisco-based Fintech start-up, reputed to be a company to watch for Forbes, sleeps in bed with banks, along with other holders of the world's inheritance.

But that may not be exactly the case, as a Wall Street giant recently revealed its intention to issue a digital asset that poses a threat to Ripple's operations, but not to the value of Bitcoin.

Ripple threatened by the JPM coin?

In a move that left the left field, JP Morgan Chase, the sixth largest bank in the world, has entrusted CNBC with the launch of an internal crypto asset, called "JPM Coin". According to a comment from Umar Farooq, head of the blockchain division of Wall Street Institution, the asset will be financed in US dollars and will initially rely on Quorum, the private channel based on JP Morgan's Ethereum. Eventually, the asset will go on several channels, with interoperability solutions to treat JPM Coin in different ecosystems.

Related reading: JP Morgan: unproven crypto value, Bitcoin (BTC) could fall to $ 1,260 in the near future

Farooq pointed out that his team wanted the company to eventually be a versatile asset for the bank's operations, while "all that exists with a large ledger distributed, [that] involves businesses and institutions "will use the stablecoin.

For now, however, the JP Morgan manager said the new offer was intended to strengthen the company's internal and international transactions. Although this project may have an innocuous premise, many crypto commentators quickly turned to Twitter to point out that Ripple's services and XRP Ledger's function could be criticized.

Tom Shaughnessy, senior analyst at Delphi Digital (which recently merged with 51Cryptos), told Bloomberg that JPM Coin was a "huge slap for Ripple," explaining that Fintech's cross-border payments and fund transfer efforts could well fail. Travis Kling, Investment Director at Ikigai, echoed this sentiment. He explained to Bloomberg that if Quorum looked much like Google Sheets, not Bitcoin, JPM Coin is "clearly in direct competition" with Ripple Labs.

Kling and Shaughnessy then drew attention to what they view as defects of the nature of the XRP. Kling explained that it was a "centralized cryptocurrency", refuting Ripple's chief executive's comments, while Delphi Digital's researcher pointed out that XRP's volatile nature would be "controversial" for the institutions. who are looking for cross-border payments.

And oddly enough, much of the cryptographic community was in agreement. Moon Overlord, a famous Bitcoin merchant, joked that he was shocked that JP Morgan had created his own piece instead of the XRP. Others have commented that JP Morgan "had killed XRP's dream," alongside other quips of the same nature.

Tushar Jain, a Managing Partner of Multicoin Capital, noted that the banks had never planned to use the XRP for settlements, concluding that JP Morgan would "wipe the floor with Ripple."

But despite all these comments, the value of popular cryptocurrency has remained relatively strong.

XRP stands out

According to Live Coin Watch data, the asset has only recorded a 1.1% loss over the past 24 hours, while BTC has grown 0.07%. Although the slight underperformance of XRP may be a concern for some of its owners, some have effectively concluded that JP Morgan's information has no material material impact on the value of the asset.

Interestingly, analysts have had mixed reactions to the fact that XRP has barely budged when JPM Coin started following the trend on Crypto Twitter. Lucid TA, a technical analyst / fund manager, noted that XRP's lack of volatility only accentuated the fact that more than 95% of the quoted prices were "driven by capital flows and speculation", rather than by the fundamentals. He added that from his point of view, the crypto-asset of the Wall Street bank is "extremely bearish" for Ripple.

Crypto Quantamental, another Bitcoin-friendly fund / investment manager, has been keen to differentiate himself, saying that XRP's inaction is a "proof of concept" that assets add value to the financial ecosystem. The trader admitted that Ripple would not dispute SWIFT, but he should be able to gain ground in business-to-business spaces and small financial institutions.

Still, while the XRP has remained relatively strong over the past 24 hours, the asset currently has a downward trend. And with more information regarding the traction that JPM Coin enjoys, the XRP could lose some of its power in the long run.

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