Ripple price has received a major boost after the company locked up 55 billion XRP tokens in an escrow account as part of an effort that seeks to control supply in the market. The Fintech startup is to release 1 billion tokens every month for Ripple use. Any unused tokens will be placed back in escrow.
Escrow Lock up Impact
People can now mathematically verify the maximum supply of Ripple tokens in supply at any given time. Secured escrow account also creates certainty for XRP supply as the Fintech startup continues to demonstrate tremendous track record when it comes to supporting the ecosystem.
Regulating the amount of XRP tokens in supply underscores the company commitment to building liquidity and a healthy trusted market. Initially, there were concerns that flooding of the coins could lead to a price crash.
The move to control token supply appears to have strengthened investors’ confidence in the cryptocurrency after coming under pressure in recent weeks. Trading volumes have swelled up in the aftermath of the escrow development to nearly $700 million. Nearly half of the Ripple’s trading volumes comes from exchanges in South Korea, led by Bithumb and Coinone.
XRP Price analysis
Ripple price had initially dropped to $0.205 amidst concerns of the number of tokens in supply. The cryptocurrency has since bounced back and is currently trading at the $0.247 handle. The crypto faces immediate resistance at the $0.255 mark, which is a key resistance. A close above the level could see the cryptocurrency making a push for its all-time highs of $0.28.
On the downside, XRP price is protected by a key support level at $0.22. A close below this handle could result in the cryptocurrency dropping to the $0.20 mark. With the price above $0.23, the digital currency is currently trading in an uptrend.
Unlike other digital currencies that have been trading on speculation, Ripple XRP price remains well supported by solid fundamentals. Government’s regulators and central banks are currently using Ripple’s underlying technology and currency.
XRP has grown in popularity in part because it remains one of the fastest, efficient and most scalable digital asset in the world. Each transaction on Ripple system is normally processed in under 4 seconds in comparison to two minutes for Ethereum and over an hour for Bitcoin.
Institutions are increasingly using the digital currency for cross-border payments given that the blockchain can be scaled to handle up to 1500 transactions a second.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.
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Elon Musk Advises Crypto Users To Secure Their Crypto Keys Properly
The crypto community has not gotten over the fact that the world’s richest man has now invested in Bitcoin and has been pretty active in the industry.
However, the community is now receiving security tips for storing cryptocurrencies from Tesla’s chief executive officer. While pointing the security of cryptocurrencies, Tesla also criticized Freewallet app, a crypto wallet for its slack in security.
He also added that crypto investors should not bother doing business with wallets that don’t provide them with private keys.
Users should store their private keys
The unique way cryptocurrencies are stored makes them not redeemable when the keys are lost. Whether the holder stores them with third-party custodians or exchanges, the owner can only claim them when they provide keys to the crypto funds.
That makes securing the keys the most important thing when dealing with cryptocurrencies. As a result, selecting the safest hot or cold wallet is a priority if users want to keep their crypto investments safe.
Elon Musk has come out to advise investors to always store their private keys personally. For a company to receive the attention of the world’s richest man is something to take advantage of to grow. However, FreewalletApp’s short conversation with Musk is a sort of negative publicity to them.
After the company engaged with Musk about a Dogecoin-related post, the Tesla founder pointed out faults with the firm.
He advised digital asset investors to stay…
Bitcoin Surges After Tesla Bought $1.5 Billion Worth of BTC
The sudden rise of Bitcoin has been connected to the decision taken by the Tesla electric car company to buy $1.5 billion worth of Bitcoin.
The company explained in a filing with the Securities and Exchange Commission (SEC) that it bought Bitcoin to diversify its cash returns and more flexibility.
Musk’s Tweets also impacted Dogecoin’s price
Tesla also added that it will start accepting Bitcoin payments for all its products, although this will be based on a limited basis and applicable laws. If the company concludes and starts accepting cryptocurrency, it will make it the first major car manufacturer to accept Bitcoin payments. The company’s founder and Chief Executive Officer Elon Musk has developed an interest in Bitcoin and cryptocurrencies.
He has been tweeting severally about the viability of the Dogecoin (DOGE), which doesn’t have an important market value attached to it.
ur welcome pic.twitter.com/e2KF57KLxb
— Elon Musk (@elonmusk) February 4, 2021
Few hours after endorsing Dogecoin, the cryptocurrency rose by an impressive 50%. But regulatory authorities are still concerned about the risks in cryptocurrency investments, with several regulatory bodies warning traders and investors they could lose all their money from crypto investments.
But for Tesla, the company decides to diversify its funds and increased its cash returns. However, Tesla also warned investors about the volatility of Bitcoin’s price in its SEC filing. According to the SEC…
Partnership Between Bridge Mutual & AllianceBlock Announced
Decentralized peer-to-peer discretionary digital asset coverage platform Bridge Mutual has announced a partnership with AllianceBlock. AllianceBlock is a decentralized, blockchain-agnostic layer 2 protocol bridging decentralized finance with traditional finance. The partnership will allow AllianceBlock and Bridge Mutual to provide traditional investors with a protected bridge to DeFi through decentralized coverage.
“Discretionary coverage is a very important part of our ecosystem, so we are excited to partner with Bridge Mutual and leverage each other’s technologies,” says Rachid Ajaja, CEO of AllianceBlock. “We look forward to building an ecosystem where all participants have access to the best products while mitigating the ever-present risk of smart contract failure, hacks, and the resultant loss of collateral value.”
In 2020, as much as $200 million worth of digital assets was lost in attacks on major digital asset services. Bridge Mutual’s platform gives users the option to purchase and provide discretionary coverage, reducing investors’ risk of losing funds because of theft, exchange hacks, stablecoin price crashes, exploited contracts, and other vulnerabilities in digital assets.
By using Alliance Block’s multi-pair liquidity mining platform, Bridge Mutual will be able to offer BMI token holders instant liquidity through staking and high APY rewards for a variety of pairs. Once integrated into AllianceBlock’s P2P lending platform, Bridge mutual will be able to provide coverage to investors. Additionally, Bridge Mutual is working towards…