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Mattski

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  1. How come ripple price is so different on IG to say crypto currency market cap site, yesterday ripple was 3.20 somthing an dog had it at 2.60 both in usd Good question! This is my understanding from having spent some time trying to understand the price discrepancies myself... Coinmarketcap is showing average prices across all the major crypto exchanges, the interesting thing when you click on how the pricing is made up by exchange is that there is wide differences the same crypto currencies are traded at on different exchanges. I had assumed that the crypto currencies, as a "global currency" would tend to rapidly equalise in price (aside from temporary wide swings during short term liquidity crises) across the major exchanges because price differences would be quickly exploited by people buying from one exchange and selling on another. But in practice not all exchanges are open to trading to people in all territories, and in particular Korean's seem to be very active in buying and selling crypto currencies but the exchanges like Bithumb are only for koreans with fairly strict controls on accessing the exchange and possibly also with export controls on capital. Coinmarketcap is converting pricing on these exchanges into the equivalent USD price but in fact it's really quite hard for foreigners to buy on the exchange and could be hard to convert back from KRW to USD. I presume there is leakage and the price differences are being exploited by someone but they are obviously not easily exploitable hence Ripple or Bitcoin price can vary quite significantly between US/EU and Korean exchanges for extended periods of time. Ripple was being heavily brought in Korea (I think there was some announcements about Korean banks trialing it) and remains at a significantly higher price USD equivalent price on Bithumb than on the exchanges that support buying and selling directly in USD. The same has also been true of bitcoin price. I'm sure there may be other reasons why the IG price doesn't match the averaged coinmarketcap price, but this does appear to be a major one. Obviously IG is working in euros/USD not korean won and uses the exchanges that are available to people outside of Korea. Matt.
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