The after-effects of the WallStreetBets pump is crossing over to the crypto market, where Dogecoin (DOGE) and Tron (TRX) have seemingly benefited from the pump.
XRP surges more than 50%
In less than an hour, the token’s price rose from $0.35751 to a 24-hour high of $0.4893, CoinMarketCap data shows. The digital was initially trading under $0.30.
XRP’s trading volume has increased by 123% to $16.9 billion in the last 24 hours.
[caption id="attachment_26550" align="alignnone" width="848"]
Telegram group pumps XRP more than 50% |Source: CoinMarketCap[/caption]
The frenzy to pump smaller stocks began in a Reddit forum and seems to have inspired a group of crypto traders who feel that they can coordinate a similar pump.
There were reports that WallStreetBets and other crypto forums have recorded an increase in the number of new member signings.
However, the cryptocurrency industry seems to have an inclination towards Telegram, and it is in these groups that the XRP pump was coordinated.
A Twitter user wrote that a group of 55,000 members is planning to pump crypto.
Another user also noted that a growing Telegram group that gained over 10,000 followers within hours is planning to pump XRP starting Feb. 1.
XRP is not out of the woods
There seems to be no apparent reason for XRP’s surge save for the possibility that a group is behind the pump.
The XRP token has been under fire since Dec. 22 when the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple over the illegal sale of a security, the XRP token.
Ripple announced yesterday that its filed a court response to the lawsuit with the firm’s General Counsel Stuart Alderoty claiming that they are fighting for the whole industry.
What’s happening to the markets?
The pump raises questions if the markets can be easily manipulated by groups of people. There are previous reports of market manipulation in crypto, with some projects being pump and dump schemes.
What could be the motive behind XRP’s pump? Could it be because of the SEC’s lawsuit against Ripple?
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