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

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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

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Reasons Why You Are Much Safer When Crypto Trading on Dexes

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While many cryptocurrencies aim to bring the change to the world by bringing full decentralization, one aspect of the crypto space still remains mostly centralized, and that is the way they are exchanged. Most crypto exchanges are centralized companies, where traders and investors need to deposit their coins for safekeeping. This is a risky way to handle the funds, as exchanges remain susceptible to hacks and theft, as many realized recently, after the hack of the world’s largest exchange by trading volume, Binance.

During the hack, around 7,000 BTC (over $40 million) was taken, and sent to multiple wallets, never to be seen again — for now, at least. The hack also came as quite a shock, as Binance was known for its efficiency, security, and high levels of confidence. It also made people realize that their coins are not really theirs if they need to rely on third parties, such as exchanges, to keep them safe. As a result, many are now turning away from centralized exchanges, and are heading towards decentralized ones — also known as DEXes.

Here are some reasons why you might want to consider doing the same.

1. True ownership of your coins

The crypto community has a saying: “not your keys, not your coins.” The saying is now more relevant than ever, but it does not apply on DEXes. Decentralized exchanges

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Crypto Billionaire Predicts Massive Price Growth by 2021

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Crypto prices are once again going up, and Bitcoin has just passed a major resistance level at $6,000. With a situation like that, it is not surprising that everyone in the crypto community is looking forward to the future, wondering what to expect in years to come. Many experts have already given their predictions, some more optimistic than others, but almost all bullish.

Crypto billionaire Mike Novogratz has always been very supportive of cryptocurrencies, and very bullish on Bitcoin. He recently stated that he sees the coins’ prices triple in the following 18 months, meaning that Bitcoin’s return to $20,000 might not be far away, according to him.

He noted that Bitcoin is back to $6,000 after its price hit as low as $3,100 only a few months ago. These days, Novogratz does not believe Bitcoin will return to such lows unless there is a devastating exchange hack or a major shift in regulations. Of course, there was a big hack that had the potential to damage the coin’s price, only days ago. The world’s largest crypto exchange by trading volume, Binance, saw a significant security breach which resulted in a theft of 7,000 BTC.

However, so far, the coin did not react negatively to this incident. While Novogratz believed that such an event would shatter the new confidence in BTC, it simply did not happen. However, he…

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Altcoins

TokenRoll (TKR) Platform Will Take Online Casinos to the Next Level

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Corporate executives are turning to blockchain technology more than ever in an attempt to revolutionize the business world.  Although blockchain is still a relatively new concept, that hasn’t stopped more and more companies from jumping on the bandwagon.  This hot new technology has quickly gained a reputation for providing greater transparency, enhanced security, improved traceability, increased efficiency, and low costs.  One industry that could certainly benefit from decentralization is the online gambling market, specifically, online casinos.  TokenRoll (TKR) has developed a platform that appears to offer a promising alternative to centralized casinos.

Problems with Centralized Casinos

The primary reason why blockchain technology is being implemented so quickly is because it solves a lot of the problems typically associated with the traditional business model.  And online casinos are no different.  It still needs to be said that centralized casinos have proven that there is a great demand for online gambling.  The market is growing faster than anyone could have predicted, and future opportunities appear very promising and lucrative.  But industries are continually evolving and this one is no different.

A few of the problems facing centralized casinos include the following:

  • Little to no transparency
  • Consumer lack of confidence
  • Privacy concerns
  • 48-72 hour wait time for withdrawals

These are four monumental issues that need to be addressed quickly given the global growth of the market.  Casinos need to…

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