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Here Is How Litecoin’s Charlie Lee believes XRP is Artificially Controlled

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XRP
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The question as to whether the Ripple company owns too much XRP has been on the mind of many cryptocurrency investors for a very long time. This discussion was highlighted when the company locked up 55 Billion in Escrow last December to guarantee the predictability of the coin’s supply. As a matter of fact, the simple fact that Ripple owns a large amount of XRP is the reason the firm is currently facing 3 lawsuits from disgruntled traders who believe the company issued a securities offering with XRP representing a share in its holdings.

But let us talk about recent comments by Charlie Lee during an interview at the Asia Blockchain summit in Taiwan. During the interview, Charlie Lee explained his reasons for selling his entire LTC holdings and gave comparisons between LTC, Bitcoin, and XRP.

Charlie Lee expressed that he was relieved after selling all his LTC for the decision had weighed down on his mind for over 2 weeks. His main reason for selling was that he wanted to concentrate more on the Litecoin project rather than spend his time worrying about its price in the markets. As a result, we have seen the Litecoin Foundation capture partnership after partnership this year. A few of them include with Abra, TokenPay and WEB Bank.

When discussing XRP, Charlie stated that:

“There are many possibilities. …Ripple [*XRP] is somewhat like a diamond because its supply is also artificially controlled. And diamonds are actually advertising. …If you want to buy Ripple for marriage, it is very valuable, haha!”

In a sense, Charlie Lee is right for the Ripple company has locked up 55 Billion XRP in escrow. They have ‘squeezed’ the circulating supply to the current levels of 39.315 Billion. But since the Ripple company and XRP are a separate entity, it is within Ripple’s rights to HODL its XRP in whichever manner it deems fit. Locking up its XRP in escrow is similar to how you would lock up your own digital assets in a Ledger Nano S.

In conclusion, Charlie Lee is indeed right that XRP is being artificially controlled but only if you consider XRP as part and parcel of the Ripple Company. However, we have since learned that these are two different entities. Once we grasped this idea, we realize that Charlie Lee is wrong from this perspective.

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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.

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Altcoins

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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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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