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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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Aluna.Social is a Compelling Social Platform for Crypto Traders and Investors

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When one thinks about the social media landscape, the companies that first come to mind are most likely Facebook, Instagram, LinkedIn, and Snapchat.  These platforms are a great way to stay connected with friends, families, and colleagues, especially when geographic distance is a factor.  But, in addition to just chatting about life in general and sharing pictures, social media can be used to bridge the information gap that exists within the investment community.

Over the last decade, many trading offices have been established in large cities all over the world which allow solo traders and investors to pay a monthly fee in exchange for a workspace.  The real benefit to trading in these offices is to participate in the free flow of trading ideas and information.  Proprietary trading is one of the most challenging careers to be successful at and the exchange of ideas is almost required in order to succeed.  Traders at hedge funds and investment banks work in teams so why shouldn’t remote traders?

While these trading offices are a great way to help bridge the information gap, Aluna.Social may provide an even better way, especially as it relates to cryptocurrency trading.

Mission Statement

Aluna.Social, founded by Alvin Lee and Henrique Matias, is a multi-exchange social trading terminal for crypto traders and investors.  The goal of the platform is to help newcomers shorten their learning curve,…

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CoinFlip Scores Big with BRD Wallet Partnership

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As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible.  While many crypto users are extremely tech oriented, a lot of those on the sidelines are not.  The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above.  In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country.  Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.

In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map.  Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells.  BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit.  The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.

Cryptocurrencies are already making a huge difference around the world.  Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies…

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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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