You are using an older browser version. Please use a supported version for the best MSN experience.

Cryptocurrencies are plunging, led by ripple

CNBC logo CNBC 1/8/2018 Fred Imbert
UP NEXT
UP NEXT

Ripple, the second-largest digital currency behind bitcoin, crashed more than 30 percent Monday. It traded at $2.34, according to Coinmarketcap.com.

Bitcoin was off by 15 percent, while ethereum fell 8 percent, according to Coinbase.

Ripple left counterparts like bitcoin, the largest digital currency by market cap, in the dust last year. In 2017, ripple soared 35,000 percent, while bitcoin rose 1,500 percent.

But contrary to many digital currencies, ripple has been working with large institutions, giving it an aura of legitimacy and practicality. However, cryptocurrency enthusiasts say that centralization is the exact opposite of what the technology of the digital currencies should be about.

"The reason ripple is surging so much is it's a bubble," said Erik Voorhees, CEO of digital asset exchange ShapeShift and a vocal advocate for bitcoin as a way to separate money and the state. "Testing crypto with banks doesn't make sense. The whole idea of crypto is you don't need banks."

Ripple is officially the name of a five-year-old start-up based in San Francisco that is developing a payments network for financial institutions. XRP is the name of the coin participants can use for transactions.


AdChoices
AdChoices
AdChoices

More from CNBC

image beaconimage beaconimage beacon