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With Regulators Paying Close Attention to Ripple, Can XRP Still Achieve Cross-Border Payments?

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Ripple
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At this point, the case of whether XRP should be considered a security or a currency has become quite common. Even though Ripple has been working hard to prove that there is no relations between XRP and a security, class-action lawsuits have been issued to Ripple over claims that XRP is a security managed and controlled by Ripple.

The regulators are paying close attention

Obviously, this has brought a lot of attention to Ripple from regulators. While on one hand, the company continues to illustrate that its XRP does not even qualify to be a security, most onlookers and XRP holders are left with unanswered questions on the other hand.

Already, the SEC has declared that Bitcoin and Ethereum are not securities. However, the verdict is still out on other coins like XRP. Given that Ripple’s XRP is the third largest cryptocurrency, everyone is waiting to see the SEC’s ruling.

Ripple owns most of XRP tokens and is the main issuer of the tokens. Meanwhile, William Hinman (head of Corporate Finance Division at the SEC) says that a commodity qualifies to be a security as long as it’s issued by a centralized third party and bought by investors with an expectation of profit.

How is XRP performing with respect to its agenda amid regulatory attention?

Well, these uncertainties and contradicting opinions on the matter have introduced a lot of confusion among XRP holders. However, the biggest concern for XRP holders still remains to be the performance of XRP and whether XRP is still on track towards achieving cross-border payments soon.

Apart from XRP, Ripple is also known for its other products and services including xCurrent, and xRapid. All these services compliment Ripple’s overarching agenda to provide on-demand liquidity, and fast cross-border payment services using XRP token.

The general expectation among XRP holders is that XRP eventually gains value and achieves adoptability once banks and commercial institutions start using the XRP to facilitate payment. In this regard, David Schwartz, the chief cryptographer at Ripple, believes that there is still a long way before banks will start to use decentralized ledger technologies like Ripple to settle cross-border payments.

This comes at a time when Ripple has already made tremendous achievement in terms of partnerships with over 100 banks and financial institutions across the globe. Most holders of XRP remain high spirited hoping for XRP’s performance in the market to improve going forward even as its price keeps moving back and forth around the $0.5 mark.

Banks want privacy and speed

Schwartz further explains that even though financial institutions understand and appreciate the potential of decentralized ledger technologies, they are particularly seeking technologies that will keep transactions private while processing large volumes with accommodation for a variety of currencies and assets. As it stands, Blockchain is yet to achieve such levels of scalability and efficiency.

With so much attention being drawn to Ripple and XRP by regulatory bodies, it will be interesting to see how the company maneuvers through the courts to maintain focus on achieving its agenda. Hopefully, the verdict on Ripple XRP will be out soon and if an agreement document between Ripple Labs and Financial Crimes Enforcement Network is anything to go by, Ripple’s case might be determined sooner. According to the settlement agreement document between Ripple and FinCEN, XRP is identified as a currency and not a security. This could give ripple a fighting chance and release the regulatory pressure that the company is currently facing.

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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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