TokenInsight Releases New Rating Report on Mobile Payments Cryptocurrency Ripple

November 15, 2018         By: Steven Anderson

I admit, when TokenInsight sent a copy of its new rating report on the Ripple (XRP) cryptocurrency out our way, it featured—bold as brass at the top of the first page—a point I never thought I’d see connected with the cryptocurrency market. It came right in the the first five words: “BB Outlook Stable.”

“Stable” and “cryptocurrency” tend to go together about as well as “suit made of ribeyes” and “velociraptor cage.” That didn’t stop TokenInsight from considering Ripple’s outlook to be fundamentally stable, giving it a BB rating and ranking it as the number three cryptocurrency.

TokenInsight defines a BB rating: “Technical feasibility is good, the status of operations is relatively stable, the possibility of influence on the project by unfavorable changes in the environment

or uncertain factors exists to a relatively large extent, and risk is basically controllable.” The maximum rating is a AAA, and the minimum is a D that includes phrases like “extremely high risk of failure.”

One of the biggest points that contributed to its assessment is Ripple’s overall price stability. Ripple hit an all-time high of $3.40 per token back in the January run-up, but promptly lost most of that in the crash, sending it to its currently level of around $0.40 per token, where it has remained with only minor fluctuations since about June 2018.

There were plenty of other points as well contributing to TokenInsight’s positive assessment of Ripple, including its potential for cross-border payments operations, its highly centralized network, its extremely low processing fees, and its active community with a positive outlook.

It may come as a shock to realize that there are stable elements of the cryptocurrency market. While Ripple has lost a lot percentage-wise, it’s lost very little objectively, going from its all-time high to its current level by losing about $3 per token. That’s a far cry from bitcoin, which lost nearly $13,000 per token from its highs to its current level. A currency that fluctuates within dollars rather than thousands of dollars certainly has some aspirations to stability.

While the crypto market in general is constantly in flux, it’s clear that Ripple is still holding to a pretty thin line. That could give it a real edge toward mainstreaming down the line, and likely supports TokenInsight’s assessment of it.