Connect with us

Blogs

Ripple (XRP): The new promise of cryptocurrency futures market

Published

on

futures market
READ LATER - DOWNLOAD THIS POST AS PDF

Unlike Bitcoin futures market, XRP promises an authentic benefit for futures digital currencies investments. Regarding this, Ripple INC. has been deploying a futures marketplace for the intended third-biggest cryptocurrency for almost two years now, which will belong to the startup Crypto Facilities.

Still, there’s not much information about it, but as the CEO himself recently told CoinDesk, they are on their way to work along with some of the best market makers.

As a matter of fact, it wasn’t until Bitcoin was very close to getting their Bitcoin derivative regulated by CFTC (Commodity and Futures Trading Commission), that Schlaefer decided to quickly partner with Ripple in order to launch XRP futures, the second futures-related cryptocurrency after the Bitcoin futures product got regulated by FCA (Financial Conduct Authority) of UK.

Later on, XRP futures had a trading volume of $14.2 million a month, this after CME Group and Cboe opened in December their first futures product. A little later, just when the BTC futures contract of Cboe finished, XRP futures increased almost the double reaching the amazing number of $24.6 million.

Even so, it was not known by the outsiders that futures got traded in that big of a scale, but in fact, this is something that promises to change after the company is exploring now for other contracts and is on the way of keeping the excellent result for another month.

“The liquidity has been growing quite a lot,” Schlaefer said, adding: “We have seen our volume growing through February and expect March to set a new record.”

Imitating the price

Even when yet Schlaefer has not revealed the market makers’ identities he’s working with, the information provided to CoinDesk shows a potential growth.

For example, the XRP futures cash volume was very flat from its launching in 2016 ‘till March 2017, when the volume tripled to USD 3.08 million and continued growing to the significant number of USD 12.1 million just a month later. Moreover, something similar happened to XRP during this time, passing from USD 0.03 to USD 0.34, although then it shrunk notoriously.

Nonetheless, it went back up again later when XRP futures and XRP increased one more time to USD 24.6 million and $3.53 respectively (a record reach).

Regarding this, Schlaefer stated that an average number of 2500 people on XRP futures seems small, but this represents only 30% of the final amount of investors the company owns. Furthermore, most of the trading transactions are labeled as retail investments, and that doubtlessly represents an excellent chance for the company.

Continuing momentum

There are many reasons to believe futures market can continue emerging. For instance, CME, the $55 billion-valued company,  set a boundary post while working with the Crypto Facilities in Bitcoins futures launch.

Still, it’s uncertain if CME Group is considering to join XRP futures, although it is highly possible an alliance on this matter. Moreover, a Cboe member stated the executive chief claimed the company was willing to adding some other crypto-related options.

Similarly, Paul Chou, CEO of LedgerX and co-founder, the company responsible of launching the first regulated and physically-settled Bitcoin derivative product; recently declared his company is exploring the likelihood of adding XRP futures any soon.

We will be updating our subscribers as soon as we know more. For the latest on XRP, sign up below!

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 Kristian Bjornard via Flickr

Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

Published

on

collateralized debt position
READ LATER - DOWNLOAD THIS POST AS PDF

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…

Continue Reading

Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

Published

on

Hodium
READ LATER - DOWNLOAD THIS POST AS PDF

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…

Continue Reading

Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

Published

on

READ LATER - DOWNLOAD THIS POST AS PDF

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…

Continue Reading

Elite