Why Are Cardano, XRP, and Chainlink Tokens All In Free Fall Today?

Discover why Kim Kardashian has been associated with the acronym FUD.

What transpired

Today, Cardano, XRP, and Chainlink are reversing their lunar flights and plummeting to the ground. They were down 12.81 percent, 17.68 percent, and 18.39 percent, respectively, in the preceding 24 hours as of 1:18 p.m. EDT. Cardano is now trading at $2.48 per token, XRP is trading at $1.14, and Chainlink is trading at $29.05.

At this point, seasoned cryptocurrency investors have seen nearly everything, but they did not anticipate Kim Kardashian being accused for spreading FUD (or fear, uncertainty, and doubt) surrounding the sector.

On Sept. 6, Charles Randell, chairman of the United Kingdom's Financial Conduct Authority, claimed that celebrities like Kardashian put retail investors at danger by tempting them towards potentially fraudulent cryptocurrencies. Earlier this year, Kardashian endorsed Ethereum Max, a little-known "penny stock" cryptocurrency, to her more than 200 million Instagram followers. As a result, the token has lost almost 90% of its value since May's peak.

Thus, what

The shift has prompted investors to reassess the underlying value of their altcoins, and regrettably for the majority, the cryptos have not yet caught up to their market capitalisation. Consider Cardano's ADA, which began as a virtual nonentity last year and has grown to become the world's third largest token.

Mike Novogratz, CEO of prominent cryptocurrency asset management firm Galaxy Digital, stated in a tweet earlier this month that none of the experts he interviewed anticipated Cardano gaining any traction with developers. Cardano's market cap has risen to over $80 billion despite the fact that it currently lacks smart-contract capability and hence cannot be used to develop decentralised applications (dapps). Additionally, there are concerns that the Alonzo upgrade, which is expected on Sept. 12 and would enable smart contracts, is not yet ready due to issues such as a lack of concurrent processing slowing down the network.

Following that, XRP is the most susceptible to regulatory scrutiny of the three, as its developer, Ripple Labs, is embroiled in a litigation with the Securities and Exchange Commission. Although the litigation involves whether or not the sale of XRP to raise capital is the illegal sale of unregistered securities, that is not the primary concern with XRP. The cryptocurrency has grown to a market capitalisation of $53 billion despite being decoupled from RippleNet, the liquidity solution used by financial institutions to perform cross-border transactions. Thus, it needs to be seen whether banks can successfully deploy XRP in addition to Ripple Labs' business software solutions.

Finally, Chainlink is pioneering the integration of blockchain smart contracts with real-world data sources such as asset prices and retail payments. However, detractors question if services such as providing decentralised exchanges with cryptocurrency data deserve a $13 billion price.

What is the next step?

Each year or two, a new round of FUD hits the crypto market, shaking off those in it for the fast money. It's critical to remember that the long-term value of cryptocurrencies continues to expand in times like these. For instance, in 2018, Ethereum had a significant market capitalisation but provided little usefulness through its smart contracts. Now, the Ether token is critical in the development of decentralised applications, decentralised exchanges, and decentralised finance solutions, among others, with a total addressable market value in the hundreds of billions of dollars. Therefore, unless one requires immediate cash, avoid panic selling.

Support us!