Measures absolute and relative price fluctuations over several time frames and other variables.
Calculates returns in comparison to moving averages and other factors.
Measures the ability to scale, upgrade and other technological weaknesses or strengths.
Evaluates public acceptance, participation of developers and other key factors.
Ripple’s co-founder, Jed McCaleb, left Ripple in 2013 but reportedly still retains 20 billion XRP. McCaleb has a history of dumping XRP in large quantities. In May 2014, he publicized his intent to sell all of his remaining XRP within a two week period. XRP took a nosedive on May 22 as the rumored selloff developed. Unfortunately, Ripple is haunted by pumped values and historical dumps.
As stated before, Ripple has a history of large price upswings. Who can forget Ripple’s large price jump in December of 2017? This was due to a partnership with American Express and rumors about the token being available for trade on Coinbase. The dump may have been largely dependant on the falsification of the Coinbase rumors. Ripple would receive a better ROI rating if it weren’t for its colossal dips.
Ryan Fugger had an idea for a protocol back in 2004 when he was working for a local exchange in Vancouver. He wanted to create a system that would allow both banks and individuals to communicate directly and avoid dealing with third parties because dealing with a third party takes time and is expensive. Fugger built the first version of his system and called his website RipplePay.com.
In May of 2011, Jed McCaleb, a software engineer who worked on peer-to-peer systems including eDonkey and on the software for cryptocurrency exchange Mt. Gox, started working on a distributed ledger in which verification of transactions would happen because of the consensus among users of the ledger.
The partnership with American Express validates the Ripple protocol and technological potential. Click here to read more about the history of Ripple.
The largest issue that the public has with Ripple is the absence of mining. The network does not have a fair way to distribute the currency among the users of the network. For this reason, Ripple creators first placed 100 billion XRP in their own wallets intending to give it away to Bitcoin users that they wanted to get onto the Ripple network.
One of the biggest disadvantages of the network was an absence of trust from the crypto community. Many of the Bitcoin users did not trust the currency because its creators pre-mined the whole amount and kept 20% of the currency.
Ripple has made some real headway especially in connecting the crypto world to real-world business use. The Ripple system has been integrated into a few banks and payment networks to reduce costs.