On Saturday, XRP stock price took a steep rise which is quite similar to the price action of GME stocks. The price of the cryptocurrency of Ripple Labs surged to 56% hitting an all-time high of $0.50944 since last December. The highest price marked by the digital currency marks the biggest percentage gain in a day.
According to the crypto experts, the rise of the stock price is heavily influenced by the members of Buy & Hold XRP. It is a recent Telegram group that was actually developed on Saturday. Within 24 hours, the members of the group increased to 200,000 which led to the creation of another official channel for the group members.
Crypto-Pump Groups Behind The Rising Stock Of XRP
According to Jehan Chu, the co-founder and managing partner of Kenetic Capital, similar kinds of Crypto-Pump groups are being imitated to a great extent. Crowd pumps like WallStreetBets are legitimizing the existence of such groups. Traders of these groups are moving their attention from DOGE (Dogecoin) to cryptocurrencies like XRP now.
Ripple’s digital currency has a great number of followers and it often attracts strategies like a crypto pump and dump. The strategy however began to flourish by the group of Reddit traders namely WallStreetBets.The community-based traders became well-known after they played a huge role in the rising stock of GameStop, a video game retailer. Last week, GME surged to almost 400% while DOGE, the meme coin, witnessed a rise of 800%.
In December Securities and Exchange Commission filed a lawsuit against XRP company Ripple Labs which had a noticeable impact on its price action. But recently Buy & Hold XRP is creating a buzz after its domination on the cryptocurrency’s stock price.