Crypto users recently experienced unexpected price fluctuations for Ripple’s XRP token on the Gemini exchange. The relisting of XRP on the platform for deposits and trading led to “wonky” prices, causing concern among community members. This article examines the price glitch, possible explanations, and the impact on Gemini’s platform.
Social media platform Twitter was abuzz with crypto community members posting screenshots of the XRP price glitch on Gemini. The displayed price on the exchange spiked above $1 multiple times, with one instance reaching $50. However, the actual market price for XRP, according to CoinGecko, is $0.63. This significant discrepancy created confusion and speculation among users.
Possible Causes
Some observers attribute the unusual price movements to a thin order book and low liquidity resulting from XRP’s recent relisting. The limited availability of buy and sell orders could lead to such anomalous price fluctuations. Additionally, one onlooker claimed to have witnessed a sell order placed at $50, raising the possibility of an accidental “fat-finger” market order at that price. However, it is essential to note that these are speculative explanations and require further investigation.
The Market’s Sense of Humor
Jokingly, some users commented that the inflated XRP prices on Gemini were merely a forecast of where the token’s price will skyrocket in the future. While this may be meant in good humor, it highlights the need for platforms to ensure accurate price representation to maintain user trust and confidence in the marketplace.
Gemini promptly took action to address the situation. On August 11th, at 1:25 am UTC, the exchange announced a full site maintenance to resolve the ongoing issues. During this period, all services were temporarily unavailable. Gemini assured users that their assets and funds remained secure, emphasizing their commitment to maintaining a safe trading environment. The exchange pledged to provide updates regarding the situation once more information became available.
The Ripple Case Verdict
The relisting of XRP on Gemini follows the recent court decision in the case of Ripple against the Securities Exchange Commission (SEC). United States District Court Judge Analisa Torres ruled that XRP is not a security when sold on exchanges. This ruling has significant implications for Ripple and the crypto industry, as it provides clarity on the regulatory status of XRP and paves the way for its relisting on various platforms.
The “wonky” prices observed on Gemini’s platform after relisting XRP have raised concerns among crypto users. While some attribute the price glitches to a thin order book and low liquidity, others speculate about accidental market orders. Gemini’s prompt response with platform maintenance demonstrates their commitment to addressing such issues promptly. As the XRP relisting continues, it remains essential for exchanges to ensure accurate price representation and maintain a robust trading environment, instilling confidence among users.