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

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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

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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ICTE May Bring About Sweeping Changes for Cryptocurrency Exchanges

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Cryptocurrency has taken the world by storm during the last few years. An entirely new financial market was created almost overnight which has captured the imagination of all its participants. Cryptocurrency is even starting to attract institutional money from investment banks, hedge funds, and other proprietary trading firms. Despite the rapid growth, traders remain extremely frustrated by having to deal with the fragmented nature of centralized crypto exchanges.

A Change is Needed

When cryptocurrency first began, there weren’t many participants and the trading volume was relatively insignificant. But, over time, that has radically changed. Some tokens now have a capitalization in the billions and are being traded 24-7 by institutions all over the world. Despite the volume, significant problems exist with the current way that exchanges work. Some of those problems include the following:

  • Constant fear of hackers
  • Exchange manipulation
  • Fragmented liquidity
  • Risk of identity theft

One of the biggest issues regarding centralized exchanges is the risk of being hacked. These hack stories seem to always be circulating around the internet. While experienced traders may have the tools to avoid becoming a victim, potential new traders have zero interest in dealing with this. And it’s not just the small exchanges that are at risk. Even large exchanges, such as Mt. Gox and Binance, are subject to being hacked.

Another huge risk is having to deal with…

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SonicX and Dash Could Challenge Facebook’s Libra for Global Payments Market Share

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When Satoshi Nakamoto unveiled Bitcoin to the world, the dream was always for Bitcoin to serve as a new universal currency.  It would be free from the bureaucracy of governments.  And free from the tyranny of the old-world financial cartels.  Although the dream hasn’t yet materialized, it comes closer and closer with each passing day.

One of the biggest roadblocks for Bitcoin has been scalability.  At a speed of approximately 7 transactions per second, Bitcoin lags behind other cryptocurrencies like Ripple and global payment processors like Visa.  Many expect the lightning network to have a positive impact on Bitcoin’s TPS but until that comes to fruition, mass adoption will likely need another significant development.

Libra Currency Announcement

One development that could help pave the way toward mass adoption is the launch of the Libra currency.  Libra is expected to go live during the first half of 2020 according to Facebook’s June announcement.  According to Facebook, Libra will make sending money online cheaper and faster.  It will also have a hand in improving access to financial services, especially for the unbanked.  Given Facebook’s global reach, including many third world countries, providing financial access to the unbanked could provide a huge spark to global economies.  Additionally, it could provide the growth spark that cryptocurrency needs.

Facebook’s most popular messenger, WhatsApp, has approximately 1.5 billion monthly users.  This application is…

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