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Here’s Why The Ripple (XRP), SBI Deal Is So Important

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“Not only does it have a clear use case, XRP is faster, cheaper and more scalable than any other digital asset… I strongly believe it will become the global standard in digital currencies.”

That’s what Yoshitaka Kitao, CEO and Executive Chairman of SBI Holdings, said in August 2017. SBI is a financial services company group based in Tokyo, Japan and its subsidiary, SBI Securities, is Japan’s largest online securities company with more than 4 million brokerage accounts.

XRP Daily Chart

XRP Daily Chart

Fast forward to January 30, 2018, and SBI launched SBI Virtual Currencies – an exchange with the following remit: to provide a respected and reliable exchange for both its institutional customers and individual digital asset buyers in Japan.

And here’s what’s important – the platform has launched with XRP as the only digital asset supported.

Why is this important?

Well, as per the report that outlined the development, SBI VC is looking to join the xRapid ecosystem — which is Ripple’s enterprise-grade solution — to help institutions source liquidity for cross-border payments between Japan and the rest of the world. In line with this, Ripple will integrate SBI VC’s APIs so that xRapid users can convert XRP to JPY and JPY to XRP instantly through SBI VC.

We’ve written numerous pieces on the various partnerships that Ripple has secured with big-name institutions and the impact that these partnerships could have on the company long term. What we’ve written less about, however, is the uptake of XRP as an integral part of what Ripple’s proprietary technology is trying to achieve and – in turn – the potential for long-term upside revaluation for XRP going forward.

This deal, outlined above, is one example of exactly that.

There’s a reason that SBI has decided to go with XRP as its launch-token and that’s that it’s one of the only cryptocurrencies that has been developed in line with a specific enterprise use case and that – and this is important – it has been validated against this use case time and time again.

Sure, we’ve seen white papers tell us why such and such a coin is going to be the next big thing in privacy and anonymity. Sure, we’ve seen companies tell us which institutions they intend to knock off the top spot in their respective industries.

What we haven’t seen, however, outside of Ripple and XRP, is a company and its underlying token perform against (and, indeed, outperform against) its own targets and the expectations of the community that supports it.

Right now, XRP goes for $1.12. That’s a close to 9% discount on its price this time yesterday and a huge 66% from highs recorded at the start of this month. Sure, these highs included the premiums that South Korean exchanges applied to the markets, but even excluding this premium, Ripple is down considerably. It’s not the only coin that is, of course. Despite that, twenty-four-hour volume is well above $1.56 billion.

In line with the overarching decline in the market, people are looking at some incredible discounted entry opportunities right now. With that said, this isn’t a time to just pick up any coin – there are some real winners when this sort of thing happens and these winners are those coins that have declined in line with the overarching market weakness but that, at the same time, have advanced fundamentally.

Ripple, as far as we see it, checks both of these boxes.

We will be updating our subscribers as soon as we know more. For the latest on XRP, sign up below!

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.


Image courtesy of Ripple

Bitcoin

Stepping off the rollercoaster: Why I’ve fallen out of love with Bitcoin

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Bitcoin
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The very word Bitcoin has almost become synonymous with that of cryptocurrency. It’s basically just a medium of conducting digital transactions – it’s a virtual currency and one of many. So how has it taken on a definition of its own and asserted itself as a leader in the digital financial ecosystem?

Bitcoin has been crowned king of altcoins, probably because it was one of the earliest and most successful of its kind. The trendsetter has ushered in a wave of cryptocurrencies built on decentralised P2P networks and has inspired a growing number of followers and spinoffs. But is Bitcoin struggling to keep up with the newcomers who have made considerable developments to the stability, security, and usability of the crypto world?

The supporting case for Bitcoin has been a clear one. Its pioneering infrastructure has situated it in a position of dominance in the altcoin realm. Bitcoin has a proven usage case as a store of value. Having existed over 8 years without failure, it has a large lead over most altcoins and has withstood the test of time as younger counterparts join the market. However, it seems to be on a downward slope, or at the very least, not progressing at the speed of the market.

In May this…

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Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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collateralized debt position
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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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Hodium
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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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