XCP is the native currency for Counterparty, a Bitcoin 2.0 platform that allows the creation of digital assets. The XCP price surged during the past two months due to several impressive announcements. First, Overstock CEO Patrick Byrne announced the company planned to build a decentralized stock exchange on top of Counterparty. More recently, the Counterparty developers successfully ported the code of Ethereum into Counterparty. However, the XCP price has declined for the past two weeks.
XCP Price Enters Decline
During September, the XCP price remained steady at 450,000-500,000 satoshis. However, the Overstock announcement caused an immediate spike in the XCP price. The XCP price exploded again on November 11, when Counterparty announced they had ported the Ethereum code into their platform. By November 12, the XCP price had reached 2,220,921 satoshis.
But the past two weeks have brought an unwelcome decline to the XCP price. From November 12-19, the XCP price fell more than 470,000 satoshis to 1,750,765. The XCP price rebounded to more than 2 million satoshis on November 21 but resumed its decline the following week. At press time, the XCP price was 1,412,486 satoshis–a weekly decline of more than 30%.
The recent XCP price decline could owe its origin to Ethereum’s response after Counterparty ported their code. Ethereum maintains their platform will remain superior to Counterparty’s port since Ethereum was designed from the ground up. It is possible that investors bought into XCP without considering the true implications of the announcement. If so, the XCP price should level out close to its pre-Ethereum announcement levels.
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Disclosure: The author is paid in and holds investments in bitcoin. He is not invested in or affiliated with any of the altcoins discussed in this article. Any advice contained in this article is solely the opinion of the author and does not reflect the views of CCN. Neither the author nor CCN is liable for your investing decisions, so do your homework and never invest more than you are willing to lose.
Images from Counterparty and Shutterstock