Ripple’s native token, XRP, has been experiencing a significant decline, dropping around 7% in the past day. One possible reason could be the ongoing political turmoil in South Korea.
Ripple Market Project within South Korea
Recently, Ryan Kim, a partner at crypto investment firm Hashed, revealed on X (formerly Twitter) that in 2014, Ripple Labs sold XRP in South Korea through the “Ripple Market Korea” project, which allegedly operated as a Ponzi scheme. This scheme reportedly attracted numerous Korean investors. Kim noted, “These early investors may have received considerable returns,” on December 2, when XRP was basking in bullish momentum.
Ripple Labs sold XRP to Korean Ajummas with Ponzi scheme in 2014. It called “Ripple Market Korea”. There were so many people invested in XRP back then. Probably they made so much money lol
There is genuine XRP community in Korea and That’s why Korean are buying XRP a lot.…
— Ryan Kim (@0xryankim) December 2, 2024
Several Korean media outlets have covered this story, highlighting the strong XRP community in South Korea. Reports from November 2014 detailed how the Ripple Market Korea platform sold out its initial round of XRP within two hours. The platform, which issued its own token called RMK, promised to return transaction fees proportionally to holders. At the time, it emphasized XRP’s ability to exchange with various fiat currencies, its backing from Google Ventures, and compliance with US regulations. Interestingly, Ripple Market Korea warned investors against multi-level pyramid schemes selling XRP at inflated prices.
XRP’s Dip Amid South Korea’s Political Crisis
The recent political upheaval began when South Korean President Yoon Suk-Yeol declared a state of emergency under martial law. Although lifted within six hours, the announcement had already rattled markets. Bitcoin saw a sharp drop on Upbit and is currently trading around $95,000.
XRP was among the hardest-hit cryptos in the aftermath. At the time of writing, XRP trades at $2.3263, reflecting a 7% drop. Despite being the third-largest cryptocurrency globally, XRP’s market cap fell by 6.9% to $146.11 billion, with its 24-hour trading volume down 6.07% to $42.26 billion.
Latest reports indicate that senior staff members in the South Korean presidential office, including the chief of staff, have collectively offered their resignations. This development could trigger further market fluctuations. Notably, President Yoon’s martial law announcement caused South Korea’s crypto trading volume to surge to $34 billion within 24 hours, marking a new annual high. Upbit alone accounted for $27.25 billion of this volume.
As the market continues to react, all eyes remain on Ripple and XRP’s next moves amidst ongoing political tensions.
Also Read: South Korea’s Political Turmoil Intensifies: Impact on Bitcoin and Crypto Industry
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