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Ripple gains momentum and criticism almost equally; Here is what a Ripple executive thinks

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Ripple
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2017 was definitely the year of the Ripple. In terms of growth, XRP’s value outshines the rest of the coins including Bitcoin by posing a growth of over 30,000 percent. Currently, however, the digital asset has fallen back with a 75 percent decline since last year to its current price in the $0.50 region.  Ripple has been in the headlines lately especially after a class action lawsuit was issued to the company from a disgruntled trader who lost money trading XRP. His claim: XRP is a security and thus he should be compensated by the company for his losses.

How XRP dealt with it

In response Ripple was quick and fast to indicate that XRP and Ripple are not related. This has been the overall stance of Ripple on the matter for quite some time. All in all, even with all the efforts made by the company to establish the difference between XRP and Ripple, XRP fans still appear to be bullish at the announcements of Ripple’s achievements and partnerships as if there is a correlation to XRP’s price.

It has become pretty common to read the news of how Ripple’s partnerships with banks and other financial institutions are about to spike the price of XRP. This is however not true. Even in interviews where Ripple officials speak, certain audiences ask Ripple executives when XRP is expected to advance in price appreciation. On the other hand, XRP’s critics argue that the token is not even a cryptocurrency. The fact that over 60 percent of XRP is being held by Ripple, and that the coin is not mined, makes a strong case for critics who claim XRP is not a currency.  

But how can a digital asset be a currency also be a security?

Well, while talking to Yahoo fiancé during an interview, Cory Johnson (a chief marketing strategist at Ripple) mentioned that the endless comparison by investors and crypto enthusiasts over whether Ripple and XRP are related is a tad frustrating. He said that:

no one calls Exxon Mobil oil. Exxon Mobil has a vested interest in seeing that oil is successful but that doesn’t mean it’s the same thing.

A closer look at Ripples main products and you will realize that XRP is only used as money transfer tool in Ripple’s xRapid. In fact, one of Ripple’s main products, xCurrent, does not use XRP. With Ripple building up over 100 partnerships with banks and financial institutions across the globe, none of the partnerships have affected the price of XRP.

For the average retail trader of XRP, such nuances that make XRP stand out in the market are one of the most important factors to consider when planning a long-term investment to XRP. However, this is hardly the case. To clearly illustrate his point during the interview, Johnson pointed out that although Ripple had “the best first quarter” signing more deals than before, ”XRP had the worst quarter it ever had”.

Why does’ the hype still persist around XRP then

Well to explain this, Johnson thinks that “people have money at stake” and as a result, more traders only pay attention to the price while biased reporters promote and criticize cryptocurrencies based on their holdings. After he was asked to talk about the reason behind the slow-paced adoption rate of banks to Ripple’s technology, he mentioned that xRapid (the only product using XRP) is targeted towards remittance companies and not banks as most people think. Ripple, on the other hand, continues to focus on making cross-border payments easy fast and impactful.

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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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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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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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