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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

XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange

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Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //

Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.

Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.

The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.

NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.

NFTs are already being actively traded in markets globally. For…

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Altcoins

Should Crypto Projects Devote Resources to Community Growth and Marketing?

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2020 has been an incredible year for crypto as investors have generated windfall profits and crypto projects have seen their businesses gain the spotlight they’ve been looking for.  While Bitcoin has received most of the attention after major institutional investors announced they were accumulating the increasingly scarce asset, many altcoins have also seen their fair share of glory.  When looking at all the big winners of the past year, the first project that probably comes to mind is Chainlink, having appreciated by more than 550% YTD and now valued at over $4.5 billion.  But, the actual biggest winner of the year is HEX with a YTD return of over 5,000%.

I mention both of the above projects as they have each taken slightly different paths to achieve greatness.  Chainlink has devoted resources toward building a fundamentally sound business with many strategic partnerships while HEX has spent vast sums of money on marketing and promotion.  Both approaches are valid, but one thing is certain, it is absolutely imperative for crypto projects to let the crypto community know what makes them special.  Of course, one of the reasons that makes crypto so valuable is the powerful blockchain technology that most projects are utilizing.

Cryptocurrency vs. Blockchain Technology

It’s important to make a distinction between blockchain technology and cryptocurrency.  Although they are often used interchangeably, they are different.  Blockchain technology and crypto were both created after the 2008 financial crisis, but cryptocurrency…

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Altcoins

XENO starts VIP NFT trading service and collaborates with contemporary artist Hiro Yamagata

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Hong Kong, Hong Kong, 24th December, 2020, // ChainWire //

The XENO NFT Hub (https://xno.live) will provide a crypto-powered digital items and collectables trading platform allowing users to create, buy, and sell NFTs. Additionally it will support auction based listings, governance and voting mechanisms, trade history tracking, user rating and other advanced features.

As a first step towards its fully comprehensive service, XENO NFT Hub launched a recent VIP service to select users and early adopters in December 2020 with plans for a full Public Beta to open in June 2021. 

“NFTs are extremely flexible in their usage, from digital event tickets to artwork, and while NFTs have a very wide spectrum of uses and categories XENO will initially focus its partnership efforts and its own item curation on three primary areas: gaming, sports & entertainment, and collectibles.”, said XENO NFT Hub president Anthony Di Franco.

He also added “This does not mean we will prohibit other types of NFTs from our ecosystem However, it simply means that XENO’s efforts as a company will be targeted into these verticals initially as a cohesive business approach.”

Development and Procurement Lead, Gabby Dizon explained, “Despite our initial focus, we found ourselves with a unique opportunity to host some of the works of Mr. Hiro Yamagata. We are collaborating with Japanese artist Hiro Yamagata to enshrine some of his artwork into NFTs.”

Mr. Yamagata has been…

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