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Ripple has 55 billion XRPs in escrow. Could that be linked to xRapid?

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Ripple XRP escrow xRapid

A frequent question among Ripple aficionados is about the use of Ripple’s XRP in xRapid. Does it come from the Escrow in which Ripple keeps fifty-five billion coins to guarantee the token’s availability or does it come from XRP tokens currently in circulation? 

That question is far from idle. As xRapid keeps being adopted by more and more banks and remittance services, it becomes more relevant. If those xRapid users get their XRP from the market, they will drive the demand up thus increasing the token’s price.

But let’s start at the beginning and recall the events surrounding the fifty-five billion lock-up, shall we?

Last December, XRP fans, users, and investors were a bit worried about the high number of XRP going around the markets because they feared that oversupply would bring the price down. 

Remember, this is a currency that was fully pre-mined before it ever went live so, if Ripple wanted just to dump a hundred billion XRP tokens (which, of course, they won’t), they could. 

The Ripple team decided to assuage the fans by locking away fifty-five billion XRP coins in an Escrow. The Escrow’s contracts are such that a billion tokens are released per month for Ripple Lab’s discretionary use. 

In so far as we know, Ripple means to use this monthly sum to incentivize markets and to sell to institutional partners. Whatever is left after each month finishes, is locked up again in another Escrow.

How is XRP relevant to xRapid?

xRapid is one of Ripple’s solutions for financial institutions. It allows them to complete international transactions safely and quickly (a live demonstration was performed by Ripple’s chief cryptographer on last Consensus conference, and it made an impression) using any currency (fiat or crypto) they want. 

But if they choose XRP, things are more efficient, and costs go down. The transaction fee must be paid in XRP anyway. xRapid is already working in the real world. 

It’s cheap ($0.0004 per transaction and it’s fast (two to three minutes instead of the three to four days such operations usually need). Even the bank’s customer sees a difference in price as it can cut their cost up to seventy percent.

Which brings us back to our original question. This XRP used in xRapid transactions comes from the market or is it purchased by Ripple’s partners from the Escrow allowance?

The good news for all those who hold XRP is that it comes from the market. When the transaction is completed, those XRP are sold back into the market, which is pretty much the same as what happens among individual traders. The amount that goes out and back in the market, of course, is a function of the amount transacted by the remission.

And what difference does that make for XRP’s price?

Ripple’s XRP has been the most traded cryptocurrency in the world since last March, which gives it high liquidity. This can encourage customers to use it, so more money will be sent across borders in remittances, and that’s how xRapid will help things. 

The coin’s availability makes it ideal for nearly instantaneous payment settlements, which is exactly what Ripple meant from the beginning. As the number of transactions and amount of transacted money using xRapid keeps growing, so will the XRP price since each operation needs to tap into the market to get some XRP to complete each transfer.

As far as we can tell the expanding adoption of Ripple’s xRapid can only increase the demand (hence, the price) for the XRP currency, even if it does it slowly. But if you think a bit about it, slower is better, that way potential xRapid users will adopt it without fearing XRP’s volatility.

The current market is optimistic about XRP, it seems. Current market capitalization is only $10 billion short of Ripple‘s holy grail: $400 billion. They’re getting there. Don’t be left out.

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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.

Image courtesy of Pxhere.com

Altcoins

My Crypto Heroes Announces Issuance of MCH Governance Token

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Tokyo, Japan, 24th November, 2020, // ChainWire //

My Crypto Heroes is happy to announce the issuance of MCH Coin as an incentive to players in the My Crypto Heroes ecosystem, aiming to allow them to craft a “User-oriented world”. The MCH coin is available on Uniswap with a newly created pool with ETH. 

My Crypto Heroes is a blockchain-based game for PC and Mobile. It allows users to collect historic heroes and raise them for battle in a Crypto World. Officially released on November 30th, 2018, MCH has recorded the most transactions and daily active users than any other blockchain game in the world.

What is MCH Coin?

MCH Coin is being issued as an ERC-20 Standard Governance Token. The issuance began on November 9th, 2020, with 50 million tokens issued.

Of the funds issued, 40% are allocated to a pay for on-going development and as rewards for advisors and early investors. 10% are allocated to marketing and the growth of the ecosystem, and 50% are allocated to the community. The Distribution Ratio of the MCH Coin is subject to change via a governance decision.

The MCH coin will be used as a voting right as part of the ecosystem’s governance, with 1 coin being 1 vote. It will also be used for in-game utilities and payments. Additional information can be found here:

https://medium.com/mycryptoheroes/new-ecosystem-with-mchcoin-en-a6a82494894f

During December 2020 the first governance…

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Rewards Platform StormX Offers 50% Crypto Cashback Bonus for Thanksgiving

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Singapore, Singapore, 23rd November, 2020, // ChainWire //

Blockchain-based rewards platform StormX has released a seasonal promotion for its award-winning Crypto Cash Back App. The promotion will allow app users to earn a 50% bonus on top of their cashback between Thanksgiving Day and Cyber Monday (November 26-30).

StormX has also introduced a brand-new staking service, allowing users to earn an additional 50% per year when they stake STMX tokens. The native ERC20 token of the StormX ecosystem, STMX has a total supply of 10 billion and is available to trade at many of the world’s top exchanges, including Binance and Bittrex.

“With Bitcoin’s price approaching its all-time high, interest in cryptocurrencies has renewed, though some people believe it’s now too expensive to buy in,” said StormX CEO and Co-Founder Simon Yu. “What we have done is create an easy way for such individuals to accumulate bitcoin, ethereum and other cryptocurrencies via everyday shopping.

“We’re also excited to provide users with the ability to earn greater rewards simply by staking their tokens.”

Since the StormX mobile app launched its Shop feature with over 700 stores in February 2020, some 400,000 unique users have been added to the rewards platform. StormX has also witnessed over 50% month-on-month growth for sales. The app is available for download on the App and Google Play Stores, and can be downloaded as a browser add-on from the Chrome Web…

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BITTREX GLOBAL CONFIRMS FREE TRADING AND LISTING FOR TOP DEFI TOKEN

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Valduz, Liechtenstein, 17th November, 2020, // ChainWire //

International cryptocurrency exchange promotes free trading and no gas fees for leading DeFi tokens

17th November 2020 — Bittrex Global GmbH. announced today 8 new DeFi tokens will be listed this week including:

  • UMA (UMA)
  • Aave (AAVE)
  • Balancer (BAL)
  • REN (REN & renBTC)
  • Kyber Network (KNC)
  • Band Protocol (BAND)
  • YF Link – (YFL)

Bittrex Global’s users can trade all of their DeFi  tokens with no trading or gas fees until 2021. The decision to enable free trading on Bittrex Global for DeFi tokens  follows on from the 1,000% growth of the DeFi asset class over the course of 2020.

The decision to enable free transactions will see more investors enter the Blockchain Act’s digital asset regulatory system, supervised by the Financial Market Authority in Liechtenstein (FMA) under the Due Diligence Act which requires traders to comply with the KYC/AML/CFT standards.

“The last year has seen huge growth in DeFi as an asset class and a number of significant milestones completed,” said Bittrex Global’s CEO Tom Albright. “As the asset class matures and more institutional and professional investors look at the fundamentals, we are likely to see increased demand and higher trading volumes for DeFi in 2021.

We’re really excited about what we’re seeing in the space and want to see these DeFi projects grow and help them build stronger platforms through increased adoption. Offering free trading fees…

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