Early users of the Crypto.com exchange were surprised today by a notable spike in the XRP price, which briefly rose to $247. However, this euphoric increase in value was short-lived and soon turned out to be the result of a technical malfunction.
However, the real price increase of XRP is not bad either: in the last 24 hours the value has increased by 12% and has reached a price of just over $0.70, the highest since early August. With this increase, XRP has taken the fourth position on the list of cryptocurrencies with the largest market capitalization, leaving Binance Coin (BNB) behind.
What went wrong?
The temporary $247 valuation for XRP turned out to (unfortunately) be the result of a technical glitch in Crypto.com’s app. So this was not a real increase in the price of the currency. These types of errors can sometimes occur on exchanges, where incorrect prices are displayed due to an error in the system. These errors are usually spotted and corrected quite quickly, and the incorrect valuations are then not reflected in actual trading.
Due to a technical error in the app, the price of XRP was accidentally switched with that of the Binance Coin (BNB) token. In concrete terms, this means that the value of XRP was incorrectly displayed as being equal to the trading price of BNB at that time, which was around $247. This incorrect price display caused confusion among users, who started speculating on social media about this sudden and unrealistic price increase of XRP.
The price increase is of course not very realistic. The chances of XRP actually reaching a value close to $250 are unlikely. Such a valuation would result in a market cap for the digital currency of approximately $13 trillion, which would be more than twenty-one times the current market cap of Bitcoin (BTC)
The same kind of technical error
A similar technical error occurred earlier this week on the cryptocurrency exchange Binance, where a ‘decimal bug’ suddenly caused the price of XRP to rise to $5.79. This incident, caused by a glitch in the system that processes price quotes, led to confusion and excitement among investors until Binance clarified and corrected the issue.
Why is the XRP price rising?
Despite a previous incident where a technical error led to a huge, but incorrect, price increase, the XRP price continues to perform remarkably strongly this week. The coin has shown impressive growth, rising by more than 25 percent.
This recent upward movement of XRP appears to be indirectly linked to Google. Evidence suggests that Google could play a role in the underlying infrastructure of Ripple’s XRP Ledger (XRPL). Speculation about this has been fueled by a screenshot shared by Edo Farina showing IP addresses of XRPL nodes; one of which appears to be related to Google.
Although Google LLC emerges as the Internet provider, it remains unclear whether Google itself is active in managing the nodes, or whether third parties use Google’s cloud services to carry out such activities.
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