The crypto token XRP (CRYPTO:XRP) is falling on Monday. As measured from Friday at 4 p.m., XRP is down 15.7% as of 12:50 p.m. ET and was down as much as 16.5% earlier in the day. The drop comes as the S&P 500 lost 2.3%, and the Nasdaq Composite lost 3.6%.
XRP is falling after the White House hosted a crypto summit that disappointed investors.
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Summit letdown
President Donald Trump's hotly anticipated crypto summit on Friday didn't amount to much in the eyes of most investors. Nothing significant was added to the executive order Trump signed ahead of the summit establishing a Bitcoin strategic reserve. And while the reserve sounds like it would be a boon for the crypto market, the devil is in the details. The reserve will only utilize Bitcoin obtained through criminal and civil forfeiture proceedings. The government will not purchase any Bitcoin itself as many had hoped.
XRP was hit especially hard; despite having been specifically named by Trump in a social media post earlier in the week, it will not be included in the strategic reserve.
The letdown coincides with broader market turmoil and the crypto fear and greed index is now indicating "extreme fear" among investors.
The long-term outlook is iffy
Even if the broader market were stronger, I still have my doubts about XRP. While the token provides real-world value as a facilitator of interbank and cross-border transactions, I think there is a significant disconnect between that value and XRP's current market capitalization of $120 billion.
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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and XRP. The Motley Fool has a disclosure policy.
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