Connect with us

Blogs

Stellar vs. Ripple: Is XLM a safer bet than the XRP?

Published

on

Stellar vs Ripple
READ LATER - DOWNLOAD THIS POST AS PDF

Stellar Lumens and Ripple are two powerhouses in the new world of digital currencies. As we all know the two digital currencies share many similarities as both of them were created by the same person, the founder of Edonkey, Jed McCaleb.

Ripple (XRP) was born from OpenCoin corporation, while Stellar XLM was born from a non-profit organization known as the Stellar Development Foundation that is based on Ripple Protocol. The creation of Ripple was based on the attempt to resolve issues concerning international payments by providing with lower costs and faster transactions; while the invention of Stellar was done to fix Ripple’s problems. XLM was primarily grounded on XRP’s system and was aimed at redesigning the global economy for more inclusivity. But with the system’s complexity, Stellar later decided to redesign itself to be a brand in itself.

Ripple is preferred by multinational corporations and banks to make international payments via XRP coins’ transfer through its (Ripple) network. The result is considered as liquidity on demand. Ripple at the moment is being tested as an option for international money transfer. On the other hand, Stellar allows individuals to trade money directly with one another using XLM as the medium of exchange, and ‘anchors’ to handle the aspects of fiat currency.

Critics argue that with Ripple (XRP) reaching out to large corporations and financial institutions, people might get tired of it just as they did with the bureaucracy and control of financial institutions that lead to cryptocurrency in the first place.

The argument is that individuals could opt out of Ripple at some point when they do not want anything to do with financial institutions and banks and instead turn towards one on one dealings without the need for intermediaries.

In an aspect, the peer to peer economic model that allows a safe peer to peer transaction is taunted to be the most significant need by most crypto experts. The third-largest digital money is also finding problems for getting listed in two of the top American cryptocurrency exchanges, Gemini and Coinbase despite their endless appeals and persistence.

With all the hype Ripple is generating, its absence in these markets is eye-catching. Recently U.S officials warned unlicensed exchanges not to list tokens that could be deemed securities. A single company controlling Ripple is fueling speculations that it could fall under that designation. Earlier this year, Brian Armstrong, the CEO of Coinbase also added his sentiments into the pool stating he is not a supporter of Ripple.

Nagging court battles with R3 HOLDCo, who in the past have already won one court case against XRP complicates the image of the company. Despite persistence and zeal from Team XRP, constant legal issues and court cases are tainting its image of being a favorable mode of transaction.

Ripple’s great large supply of digital coins also is not doing good for investor confidence. Its dropping prices could be attributed to negative news in the market. Meanwhile, XLM has managed to capture support from its community with investor confidence peaking in anticipation of future developments as the currency wants to facilitate cross-border remittances for mostly the unbanked. Moreover, the major partner IBM will promote this in several countries in Oceania region.

Nevertheless, even though Ripple seems to be running into some issues at the moment, one should never forget that Ripple has got brilliant people on its team and the crypto has never-ever failed to surprise thus far. Consequently, deciding on either of the two looks like a tough decision to make. In fact, as it stands now, these two cryptos are not of the same market or design. Yes, both work in the same business and banking community, but yet both coins’ markets are emphatically different.

For the latest cryptocurrency news, join our Telegram!

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 Mark Brooks 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