MoneyGram’s 350% Surge Since Ripple Deal Shows Wall Street Has One Eye On Digital Assets

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Months ago we reported on one of the most iconic partnerships in the cryptocurrency industry. This partnership was between Ripple and MoneyGram. The deal saw MoneyGram adopt XRP to enhance cross-border payments. This effort has seen the company increase efficiency, reduce transaction costs and increase speed. The deal was to benefit the two companies equally and hype around the same would see valuation in the two increase.

However, at a glance, the deal seems to have benefited MoneyGram more than Ripple. Since the deal was inked, MoneyGram has surged by more than 300%. In contrast, Ripple has recorded a loss despite surging immediately following the announcement. For many XRP investors, this was not the expected result. But it has not been a bad one. Investors believe that they are playing the long game. The surge of MoneyGram stocks proves that Wall Street is keen on digital assets.

Wall Street Interested In Digital Assets Like Ripple But Still Wary

The surge seen with MoneyGram stocks shows that Wall Street investors are interested in the crypto industry. At the very least, they believe that the industry will positively impact the larger financial industry. A more than 300% surge from MoneyGram means that investors have been flocking and that there is a high expectation for the company.

In the months and years to come, the deal will have a larger impact as MoneyGram uses XRP to dominate the cross border payment space.

Photo by Rick Tap on Unsplash

Why Are They Wary?

While Wall Street investors like what they see in the crypto world, a number of things are keeping them away from investing directly. This means investing in crypto projects or buy cryptocurrencies directly.

The very first reason is the regulations. Cryptocurrencies remain largely unregulated. It is easy to be frauded and for prices to be manipulated. This makes them high-risk investments for many. This has been one of the main reasons that the SEC has not approved the first ETF. This is especially because of price manipulation by large investors. With regulations also means that they can be banned overnight and investment lost. Tom Lee, founder of Litecoin has been stating that the U.S could ban Bitcoin when it reaches $100,000.

Away from regulation, volatility has also been of great concern. The market is still very volatile surging and dropping sporadically. While this might improve in the months and years to come, currently, it is a high-risk business. Wall Street investors prefer slow and predictable movement. It will take sometime before they get used to the crypto market or the market is less volatile.

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