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Ripple’s XRP: Can it attract pension funds as a currency to store wealth?

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You’ve probably heard about CoinBase already. It’s a company based in California, considered to be one of the most important crypto exchanges in the world because of its amazing thirteen million users (that many people can’t be wrong, right?). But while it’s so well known as a coin trading site, Coinbase offers a variety of other services that are not so famous. One of them is known as “custodial service.”

That means that they accept to hold somebody’s wealth or property and make sure it stays safe and invest with it in the most reliable possible ways. It’s not a retail service, as you need at least ten million dollars to open this kind of account and, as such, it’s usually demanded by institutions that need to keep a big pool of money safe, such as pension funds.

A pension fund’s primary aim to keep money safe for the clients which is why pension fund managers are very conservative in their investment strategies and do not delve that much into the stock market. Which is not to say that they never do, several funds of this type are known to put some of their money in Blue Chip stocks it small quantities. And now the question is: will they start using cryptocurrency investment anytime soon? And if they do, how important will Ripple’s XRP be for them?

The answer to the first question is a definitive yes, just not very soon. The cryptocurrency markets are still not very appreciated by financial operators that are used to work with traditional financial tools only. But as Bitcoin and many other assets keep moving forward and showing their worth, it’s unavoidable that even people in Wall Street will start bringing some money to the table. It’s going to be a long process, but it’s already happening to a point.

What does that mean for XRP? Nothing, until recently, but things change. Coinbase just announced that as part of its custodial service it’s studying the inclusion of forty new cryptocurrencies to use to invest and store wealth, and Ripple’s XRP is among them. That is a breakthrough as, so far, Coinbase has only used for this the handful of crypto coins it offers for trade.

It would be very significant for XRP because it would give it a use that it currently does not have and that is not seeking to acquire either. Ripple’s XRP has always been a coin with a single and clear purpose which is to settle international payments in a much quicker, cheaper, and safer way than can currently be done with the outdated but dominant SWIFT system.

That’s what it’s been aiming for since its inception, as opposed to becoming a local currency (something “average” people could use to pay for goods or services), or a means to store wealth, an investment tool or any of the other typical uses associated with crypto coins.

If Coinbase decides to use XRP in its custodian service really, that would increase the demand for this token dramatically and would turn it into a wealth storing coin, besides the regular use it has typically. And more demand means higher prices and good coin performance.

It’s not a done deal yet, Coinbase is moving very carefully lately, after the Bitcoin Cash fiasco, and the announcement is, above all, a declaration of intent. But even that is significant taking into account that the same exchange has not shown any interest so far in supporting Ripple (XRP) for trade.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Maxpixel.net

Altcoins

Aluna.Social is a Compelling Social Platform for Crypto Traders and Investors

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When one thinks about the social media landscape, the companies that first come to mind are most likely Facebook, Instagram, LinkedIn, and Snapchat.  These platforms are a great way to stay connected with friends, families, and colleagues, especially when geographic distance is a factor.  But, in addition to just chatting about life in general and sharing pictures, social media can be used to bridge the information gap that exists within the investment community.

Over the last decade, many trading offices have been established in large cities all over the world which allow solo traders and investors to pay a monthly fee in exchange for a workspace.  The real benefit to trading in these offices is to participate in the free flow of trading ideas and information.  Proprietary trading is one of the most challenging careers to be successful at and the exchange of ideas is almost required in order to succeed.  Traders at hedge funds and investment banks work in teams so why shouldn’t remote traders?

While these trading offices are a great way to help bridge the information gap, Aluna.Social may provide an even better way, especially as it relates to cryptocurrency trading.

Mission Statement

Aluna.Social, founded by Alvin Lee and Henrique Matias, is a multi-exchange social trading terminal for crypto traders and investors.  The goal of the platform is to help newcomers shorten their learning curve,…

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CoinFlip Scores Big with BRD Wallet Partnership

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As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible.  While many crypto users are extremely tech oriented, a lot of those on the sidelines are not.  The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above.  In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country.  Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.

In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map.  Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells.  BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit.  The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.

Cryptocurrencies are already making a huge difference around the world.  Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies…

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Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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