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Ripple XRP Set To Become The Transaction Leader

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Ripple is always focused on improving the transaction system and the fact that it is powered by the open-source C++ application called Rippled has made the cryptocurrency popular with the financial institutions worldwide. Ripple CEO, Brad Garlinghouse had recently said that by the end of 2018 the major banks will use Xrapid as a liquidity tool.

He talks about mass adoption of Ripple’s cryptocurrency XRP by the major financial institutions when interviewed by CNBC at Money 20/20 Europe, held in Amsterdam. When asked about XRP being the third largest token in the market according to capitalization, his reply was, “I think what we’re seeing is the overall growth of this space, and there are going to be many winners.” When compared to Bitcoin, he argued that XRP is much faster than Bitcoin and also incredibly cheaper on a per transaction basis.

Swift Challenge

It seems that Ripple’s constant efforts to handle cross-border payments will challenge Swift. Originated in 2012, Ripple has always supported faster, cheaper and reliable transactions using the blockchain technology. Swift, on the other hand, is a 45-year old interbank messaging service that has been in the charge of nearly half of the world’s high-value cross-border transactions. Swift has a co-operative system and the ownership lies with its thousands of member banks. Ripple had caught the attention of the payments industry in the second quarter of this year when it had collaborated with Banco Santander. They plan to launch a service based on the platform’s blockchain messaging technology, XCurrent that will allow Banco Santander’s customers in Spain, Brazil, Poland, and the United Kingdom to make payments in many currencies all over the world. XCurrent has enabled the banks to conduct transactions from one currency to another within a matter of seconds.

In the words of Ed Metzger, head of innovation, technology and operations at Santander UK, “There were some pain points experienced by our customers when making cross-border payments that we wanted to address with the new OnePay FX service.”…“We have had very positive feedback and good take-up. It gives the customer much more certainty over how much money will arrive in the destination account.”

This presents a challenge to the longstanding domination of Swift. The issue with the system of Swift is that when making a cross-border transfer it would go through multiple banks before reaching the recipient address. This would make the process time-consuming. Also, the transaction costs would increase due to the presence of so many intermediaries. In response to this challenge, it seems that Swift would test the potential of blockchain technology itself and also focus on improving its own messaging system. Swift has already introduced an upgraded service, Global Payments Innovation, which is currently being used by nearly 165 banks. GPI accounts service in some quarters like US-China has ensured that payments are confirmed within just 30 minutes of being initiated. However, Swift has been unable to hide its skepticism about blockchain technology.

Harry Newman, head of banking at Swift, “[Blockchain technology] is not straightforward to scale and it is not yet appropriate to do so.”…“All the announcements [by banks about their blockchain payments projects] made to date, they are either in-house or bilateral projects between banks. As you bring scale you get escalating complexity.”

The response of Ripple can be seen in the number of partnerships with financial institutions (Fleetcor, SBI Holdings, Banco Santander etc.) it has achieved since last year. There is also the speculation that Bank of America will the list and team up with Ripple. Hints have already been dropped in Reddit posts. Blockchain and cryptocurrency and its use for Trade Finance were hot topics on the “Development Day” of Bank of America, held on 17th May 2018. A presentation had quoted about Ripple’s capability of bringing a paradigm shift in the transaction system. At the moment, nothing can be said about the intentions of Bank of America as to whether it will embrace Ripple or not.

Price Analysis

CoinBase has shifted to Japan so there are high expectations that CoinBase will list Ripple (XRP). Then, the traders/investors will be able to buy Ripple (XRP) from one of the world’s most trusted exchanges. Ripple’s XRP has yet to experience soaring prices in the second quarter of 2018. This may be due to Bitcoin’s fluctuating prices or because of the fact that the platform is given more importance than the coin. At the time of writing, according to coinmarketcap.com, the price of XRP shows $0.67 USD (1.64%) approximately. The market cap shows nearly $26,335,301,929 USD while the volume (24h) is over $302,235,000 USD. (As of 6th June 2018) Ripple (XRP) shows a bullish trend largely despite the sell odds being stacked against it. It is to be seen when Ripple will again break the $1 line. Ripple continues to maintain its rank at the 3rd position.

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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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