The third-largest cryptocurrency on the market saw a sharp drop on Monday, falling to $2.07, its lowest price level this year.
"This morning we excluded some Korean exchanges in price calculations due to the extreme divergence in prices from the rest of the world and limited arbitrage opportunity".
Ripple lost its title as the second biggest cryptocurrency when CoinMarketCap made a decision to exclude Korean exchanges from its averages, which resulted in Ripple?s price being shown at a lower price.
While the execution left something to be wanted, the exclusion of South Korean markets seemed logically sound to some cryptocurrency watchers, including Ripple Chief Cryptographer David Schwartz. However, in recent weeks, several other cryptocurrencies have gotten some major attention from investors and the media. "By removing that, it looks like the market cap fell by 30 percent and so people rushed to sell because they're not sure what's happening".
Analysts said bitcoin was also undermined by news earlier in the session that South Korean financial authorities were inspecting six local banks that offer virtual currency accounts to institutions. "Look closely at the data and don't be mislead".
Observers increasingly are questioning the value of various cryptocurrencies, and the 20% plunge in Ripple on January 8 shows that significant risk exists.
The uncertainty, however, remains over the future of Bitcoin as a payment tool and many investors continue to treat Bitcoin more as an investment than an actual currency. The site is mainly for English readers and the elevated Korean prices are not reflective of what English traders would be able to achieve.