Community sentiment for Ripple and the XRP token stayed strong after the Bloody Sunday, where the market bled almost $20 billion in market capitalization. FUD ensued as top currencies lost around 10% in value yesterday.
The XRP community maintained a positive outlook, however, as they demonstrated solidarity on Reddit and Twitter. They treated the crash as an opportunity to increase the size of their bags and HODL.
The existence of a transparent and eternally relevant use-case gave the community a positive push. Many even went to the point of saying that the price of the token was totally irrelevant because the use-case for the token is so strong.
Ripple aims to use the currency in one of their products known as xRapid to provide settlement across borders. They aim to replace existing solutions such as the Swift messaging system for communication and nostro and vostro accounts for providing cross-border liquidity. This comes with institutional money to the tune of Santander, Western Union and Moneygram. Therefore, a real-world use case scenario is already established.
A user on Reddit, Yablan summarized the sentiment in a Reddit post. He said:
“People basically buy and sell cryptocurrency coins just as if they were valuable vintage baseball cards, which hold value based on supply and demand, but with which you cannot actually DO anything…Ripple are actually developing a platform and services around XRP, where said services actually make sense, and solve a real-world problem (fast and reliable international money transfer between banks and financial institutions WITHOUT requiring to have money locked up in nostro/vostro accounts).”
The baseball card analogy resonated with the community, as the speculative nature of the market is very well one of the cornerstones, for better or for worse. Out of the top 10 cryptocurrencies by total market capitalization, Ripple and Ethereum are the most well-known for having solid use-case scenarios.
The post inspired others to regain their lost confidence in the token and in the market. The bear run yesterday saw major cryptos lose their value and investors lose their minds. As the price of XRP dropped from $0.66 to $0.56, an almost 15% drop, the cryptocurrency subreddit erupted with investors blaming technical analysis, providing links to suicide hotlines and publishing memes upon memes.
The crypto-community collectively lost their minds, but the XRP community stayed strong, as seen by the comments under Yablan’s post. User kazz_oh said:
“You could argue (and economists do) that privacy has utility and value (so check out the privacy coins like monero). Likewise Ethereum has utility (smart contracts and encrypted storage), which equates to productivity and value. While EOS tokens give you a stake in the networks computing power (CPU, Ram, Storage), as well as being a platform for DApps that includes a great deal of functionality. So ripple isn’t the only token that has underlying value. That said, I am invested in ripple for exactly the same reason!”
User zodan78 says:
“Nice analogy with the baseballcards. You are right too. Volume will come from real use of XRP through Xrapid, therefore the price will be less dependant on speculation. Good post.”
User TobiasProtector said:
“That’s exactly the reason people held their XRP across the ATH. Real world application. Testing and partnerships announced indicate that this crypto might get used in the way it was designed. Obviously, if this is the case, there’s a reasonable chance that the price of it may far surpass the previous highly speculative ATH. On the other hand , you have to consider at during the previous ATH the cryptomarket in general had a lot of cash flowing into it.”