XRP, the cryptocurrency issued by Ripple, briefly reached $50 on the Gemini platform shortly after it was relisted. This value was significantly disconnected from its real price, currently at $0.63. This unusual situation seems to have been caused by the low liquidity of the order book on Gemini, which is still very limited.
XRP at $50 for a few moments
XRP, Ripple’s cryptocurrency, traded very briefly at $50 on Gemini, which had just listed it. A price infinitely far from reality, with XRP currently trading at $0.63. It seems that this small error was caused by the meagre composition of the order book on Gemini:
the order book is very thin, i have been watching all day, at one point there was nothing for sale, someone put a lot to sell at $50. 00 and someone must have fat fingered a market order and then they were the proud owner of $50 XRP, this was from a few hours ago pic.twitter.com/W5AoG2eV0r
– John S (@lifebythedrop63) August 11, 2023
As a result, the order was executed and someone was the proud owner of these XRP for $50. Fortunately, the parity of the XRP price on Gemini quickly realigned with that of the spot market on other exchanges
However, XRP still doesn’t seem to be a favourite among Gemini traders: according to CoinGecko data, XRP is currently trading with a spread of around 8% on the platform, and market depth on this token is virtually non-existent.
However, this can be partially explained by maintenance that took place on Gemini today, during which deposits and withdrawals were temporarily halted.
Gemini had decided to relist XRP after a judge ruled in favour of Ripple in the company’s case against the US Securities and Exchange Commission (SEC). Specifically, the judge ruled that XRP could not be considered a security on the secondary market.
This news caused a brief euphoria in the crypto ecosystem, as the lawsuit had been going on for several years now. However, the final qualification of XRP as a security or not has not been settled, with the SEC announcing yesterday that it wished to appeal its case against Ripple. The crypto company plans to respond next week.
