The native token of the XRP Ledger has, hours after being relisted on the popular cryptocurrency exchange Gemini, seen its price surge to a staggering $50 in a flash rally that was accompanied by several rises above the $1 mark on numerous occasions.
On the microblogging platform X (formerly known as Twitter), several users posted charts showing that the price of XRP jumped from its current level around $0.63 to $50 on the Gemini trading platform for a brief moment, before coming back down.
Some market participants have speculated that the flash rally came as a result of a thin order book and low liquidity on the trading platform, which could be expected in a new listing. An individual claimed to have witnessed a sell order placed at $50 on Gemini.
This sparked discussions around the possibility of a trader mistakenly entering an overly high price, colloquially termed “fat-fingering” in the online world.
Amidst the intrigue, some crypto enthusiasts light-heartedly mused that the abnormal prices were mere precursors to XRP’s future valuations.
In what appears to be a swift response to these events, Gemini initiated a comprehensive maintenance process on its platform, noting it was “performing maintenance on the Gemini platform and so all services are currently unavailable.”
The move to reintroduce XRP to Gemini’s trading lineup on Aug. 10 was influenced by a recent ruling. U.S. District Court Judge Analisa Torres, presiding over Ripple’s ongoing litigation with the Securities Exchange Commission, declared that when transacted on exchanges, XRP does not qualify as a security.
The federal judge’s ruling saw XRP get relisted on a number of cryptocurrency trading platforms including Coinbase and Kraken, significantly boosting the token’s liquidity. Notably, XRP recently saw its price drop likely a result of recent criticism from U.S. District Judge Jed Rakoff of the Southern District of New York, which contested Judge Torres’ differentiation between institutional sales and sales to retail investors on cryptocurrency exchanges.
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