Why the XRP price could crash with the new swap introduction of BitMEX
At the 23. In January, the leading Bitcoin derivatives exchange BitMEX announced its intention to launch a new financial product for XRP. In a blog post, the company said this product would be a “Ripple USD quantum swap” that would allow traders to leverage the cryptocurrency up to 50 x to act.
According to a recent Twitter update, the XRP swap agreement is well on February 5 2020 to start.
We at BitMEX are proud to announce that trading of a new perpetual swap on the XRP token (XRPUSD) will begin at 0400 UTC on 5 February 2020 .
– BitMEX (@BitMEXdotcom) February 4, 2020
Since BitMEX is one of the most influential trading platforms in the crypto space – its bitcoin swap has processed about $ 2 trillion in volume over the course of its existence – many have had an impact on this new market for XRP, the third largest cryptocurrency after Market capitalization, speculated.
The introduction of BitMEX's XRP swap could damage the price
On August 2 2018 BitMEX released a product for Ethereum that is similar to the upcoming XRP and allows traders to leverage ETH's performance against the US dollar with high leverage.
As can easily be seen in the graphic below, the performance of ETH during the product launch quickly deviated from that of Bitcoin. After the product has been in operation for a month, Ethereum is over 27 and Bitcoin decreased by 10 percent.
On Aug 2, 2018, BitMEX launched a $ ETH / USD swap. As you can see below, Ethereum immediately deviated from Bitcoin, plunging as BTC flatlined.
In a day or two, BitMEX is slated to release a swap for $ XRP / USD. I wonder if something similar will happen this time around. pic.twitter.com/qbEL17aoae
– Nick Chong (@_Nick_Chong) February 4, 2020
Yes, there were other factors at the time that were pushing ETH down, including the collapse of the ICO bubble and simple market cycles, but many agree that this new vehicle from BitMEX is a threat to the bullish XRP Development could represent.
Some disagree and suspect that the launch will increase the rate of the cryptocurrency. The analyst, Sean Nance, noted that “XRP is still at its lows” is likely to see the third largest cryptocurrency “pump when BitMEX lists the perpetual contract …”
Proof of text: newsbtc