Ripple Co-Founder: XRP Price Is Not Linked To Liquidity On Demand

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  • Ripple's liquidity-on-demand payment technology has no impact on the price of XRP, according to Chris Larsen.
  • The company is willing to work with central banks to promote the development of a CBDC.

As the CNF reported yesterday, Chris Larsen, CEO of Ripple, spoke at the LA Blockchain Summit about a possible exodus from Ripple from the U.S. and a Cold War between China and the U.S. over the financial technology of the future. For the XRP community, however, Larsen's statements about the XRP token and liquidity on demand (ODL) may also have been very interesting.

Larsen expressed his opinion that investors should not expect ODL to influence the price of XRP. According to the co-founder of Ripple, the value of XRP is much more strongly correlated with Bitcoin and Ethereum, rather than the Ripple ODL projects that are currently determining this.

''If you look at the XRP Ledger, XRP the decentralized digital currency, most of what happens in that ecosystem is actually correlated with Bitcoin and Ethereum. It's like $ 100 billion worth of trading a year, say. The vast majority are connected to what is happening in the global market, and are being driven by all the things that drive Bitcoin and Ethereum.''

''Is it a value store? Is it perhaps just holding it as something that we value in a digitized and globalized future? Is it speculation? This is all happening in its own economic reality, completely separate from what Ripple is focused on.''

Larsen also explained that Ripple "continues to make great progress" and positions itself as a corporate blockchain solution. The gateway to Ripple are banks and payment service providers, which already have "100 million customers", as well as large wallet providers, such as Ripple partner bKash, which offers more than 135 million wallets for people in Bangladesh who would not otherwise have a bank account. Larsen further commented on this:

''So it's all these financial institutions that bring in these huge amounts of customers and bring in all the other infrastructures that are not changing here, custody relationships, security relationships, AML. So we think this is a good approach to quickly address these really big networks.''

Jeff John Roberts also asked Larsen if Ripple would consider acting as a consultant to central banks, and if that would open the company to new accusations of being "the sovereign of XRP". Larsen saw no problem with this and explained that ODL is only a small fraction of the XRP market and that the company would like to work with a central bank.

In this sense, Larsen also pointed out good relations with the Bank of England, which is known for having performed a proof of concept with Ripple in 2017, as well as with the U.S. Federal Reserve and institutions in Japan and Singapore. According to Larsen, decentralized currencies, such as the XRP, are a bridge between political and centralized digital currencies:

''You know, you look at ODL, in the last two years it's about $2 billion, so it's a small fraction of the overall experience that's going on in those markets. So I think Ripple is the company - we just look at how you have a fit product/market.''

''So, if there is a suitable product / market with a central bank that wants to exploit digital currencies - absolutely, we will be involved. It is a different thing, but we find it valuable. We think that all central banks should have discussions about a digital currency.''

source: crypto-news-flash.com

Ripple advocates should not support the ‘Securities Clarity Act’

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  • The Securities Clarity Act published last week will not clarify whether ripple's sale of XRP should be considered a bond sale.
  • According to attorney Gabriel Shapiro, Ripple proponents should not support the project.

U.S. Congressman Tom Emmer, known for being an advocate of blockchain and cryptocurrency technology, introduced the Securities Clarity Act in the middle of last week to provide the long-awaited legal clarity in the United States. The Securities Clarity Act introduces a new definition for the term "token", which must exist in the intermediate area between commodity and security.

The law also creates a new term "investment contract asset" for assets sold as the subject of investment contracts. Ultimately, the goal is to eliminate the "fear of regulatory uncertainty" of companies wishing to sell digital assets.

As two renowned lawyers in spatial cryptography have already revealed, the supposed progress could, however, mean only one status quo, especially for the third largest cryptocurrency by market capitalization, XRP. In a discussion, Jake Chervinsky, head of Compound's legal department, and Gabriel Shapiro, a partner at Belcher, Smolen & Van Loo LLP, concluded that the bill will not affect XRP's classification as a title. Chervinsky said:

I struggle to see how this could be applied. Ripple sells XRP, not investment contracts to finance the creation of some new asset that can be delivered later (such as SAFTs). And regardless, the bill does not explicitly apply to an asset that is "otherwise a title" according to Howey, so it would not affect any arguments as to whether XRP itself represents an investment contract at the time of sale (Ripple promises, buyers' expectations, etc.). That is, it should be irrelevant … in relation to Ripple's class claims.

Shapiro took it a step further and explained that the account should not be supported by anyone unless they believe Ripple committed fraud by selling XRP:

Unless you think what Ripple and founders do (earning hundreds of millions of dollars by dumping XRP awarded on minor fools for years) is A-Ok, as long as they don't commit customary law fraud (very hard to prove), you should not support the "Securities Clarity Act".

Shapiro also discussed later that, in his opinion, the drafting of the project is intended to deceive people beyond its real purpose. According to the lawyer, it is not necessary to clarify what an investment contract is, but rather whether the sale of tokens, such as XRP, on the secondary market should be considered a sale of a security:

I believe the stated purpose is only designed to induce people to vote for it. […] The question is not whether or not tokens are investment contracts, but whether or not secondary market transactions in tokens should be regulated as securities transactions. Useless bill designed to declare almost all non-bonded tokens in a sneaky way.

It is remarkable that just two weeks ago, during a speech to the first "Cryptocurrency Town Hall", Emmer explained that XRP is not a title. He asked the United States Congress and especially the Securities and Exchange Commission (SEC) to finally provide regulatory clarity. Whether your own bill can take that demand into account, however, seems questionable.

source: crypto-news-flash.com

XRP enters World Economic Forum report

In the recent report by the World Economic Forum (WEF), the XRP was shown as the most suitable currency for the CBDC space.

The World Economic Forum (WEF) cited XRP, Ripple's token, as the most suitable currency for the newly developed CBDC, the central bank's digital currency.

In a report published earlier this year, the WEF said that central banks and government agencies are examining the potential of CDBs to solve global problems, such as the stability of payment systems. The Geneva-based international organization also clearly showed the difference between CBDCs and cryptocurrencies:

"CBDC is a digitized version of the sovereign currency created and published by the country's monetary authority and its obligation. CBDC differs from other forms of digital or virtual currency, including cryptocurrencies like Bitcoin and 'stablecoin' that are not issued by central banks or they are not normally accepted as legal payments.

"CBDC is a digital currency issued by the country's monetary authority and whose obligations belong to this institution. Cryptocurrencies such as Bitcoin and fixed currencies are not issued by central banks and are not accepted as legal instruments of payment.

Although the organization makes a very clear distinction between cryptocurrencies and CBDCs, the 4th largest cryptocurrency, XRP; The CBDC world did not hesitate to show it as the most suitable currency for payments and interbank transactions.

Claiming that central banks recently entered a race for their digital currencies, Ripple issued a statement on how XRP will facilitate the use of CBDCs:

The on-demand liquidity service from "RippleNet" "allows financial institutions to transact in real time in various global markets using XRP. This solution can also support direct exchange of CBDCs. XRP is faster, cheaper and more scalable than than other digital currencies as an ideal instrument for connecting two different currencies. "

source: somagnews.com

World Economic Forum Names XRP As Crypto Asset Most Relevant in Central Bank Digital Currency Space

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The World Economic Forum (WEF) is looking at Ripple's native currency, XRP, as the most relevant cryptocurrency in the emerging central bank's digital currency space (CBDC).

In a report published earlier this year, the WEF says that central banks and government agencies are analyzing the potential of CSNs to resolve perennial global financial issues, such as financial inclusion and the stability of payment systems. The Geneva-based international organization also made a clear distinction between CBDCs and cryptocurrencies.

"CBDC is a digitized version of the sovereign currency, created and issued by the country's monetary authority. CBDC differs from other forms of digital or virtual currencies, including cryptocurrencies like Bitcoin and "stables", which are not issued by central banks or are normally considered legal."

Although the WEF is drawing a clear line between the two digital assets, it designates XRP as the most relevant cryptocurrency in the wholesale space of the CBDC for intra and interbank payments and settlements.

In a recent blog post, Ripple notes that central banks around the world are stuck in an arms race to develop their own CBDCs. The payments startup also explains how central banks can leverage XRP to facilitate and support the use of CBDCs.

"RippleNet's on-demand liquidity service allows financial institutions to trade in real time in various global markets using the digital asset XRP and such a solution can also support the direct exchange of CBDCs."

source: dailyhodl.com

XRP Will Test $0.2800 if it Crosses the Accumulation Zone

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XRP Price Prediction 2020 - XRP had been climbing higher, as did Bitcoin BTC, Ethereum ETH, and all other tokens on the market in the past two days. For the first time in weeks, XRP was able to gather enough momentum to try to enter the accumulation zone. The symbol has been struggling to keep the line above the $0.2000 level and the bulls have taken control of the market eight after testing the low of $0.2190. Since then, the XRP has moved higher against the USD, breaking several resistances along the way.

XRP Might Reach the Accumulation Zone Soon

At the time of writing, the XRP symbol was trading at $0.239804. It rose 0.42% against the USD and rose 1.60% against Bitcoin BTC. The trading volume over a 24-hour period was $1,738,462,725 and the market capitalization was $10,814,509,407. The symbol approached resistance at $0.2600, but the bears quickly moved to drag the XRP symbol away from the accumulation zone where bulls would have taken full control of the market. The current consolidation of the XRP token is part of the market rally. Bitcoin BTC is rising and the other tokens are rising at the same time. Bitcoin is currently trading at $10,723.14. It is up 0.98% against the USD and up 2.16% against Bitcoin BTC. The trading volume over a 24-hour period was $54,272,760,048 and the market capitalization was $198,382,623,662.

XRP (XRP) Price Today – XRP / USD

If the price of Bitcoin BTC rises above the $11k level, it will make higher highs in the short term. If the XRP token doesn't reach the accumulation level anytime soon, you can go back to the $0.2200 level before you see another big upward trend. An analyst said the XRP symbol will gather at 20% to the $0.28 level in the short term. The rise above the $0.28 level will allow XRP to retest the $0.30 level for the first time in weeks. As reported by NewsBtc;

"THE MARKET IS EXCESSIVELY NOISE, BUT THE MARKETS ARE IN SOME AWESOME SUPPORT ZONES TO ACCUMULATE SOME POSITIONS. SIMILAR TO XRP. PATIENCE PENSES.

The XRP is not yet out of danger, despite the symbol's price action in the past two days. In the coming days of trading, we will know what direction the XRP symbol will take in the coming days.

source: smartereum.com

XRP Market Cap May Be Overstated by Billions, Messari Report Estimates

A new report from crypto data startup Messari estimates that the true market capitalization and circulating supply of the digital asset XRP is markedly less than what data sources currently present. As depicted on data providers like CoinMarketCap as well as Ripple – the distributed ledger tech company closely linked to the digital asset – XRP’s circulating supply is pegged at roughly 41 billion tokens. But in its report, Messari posits that of that figure, 19.2 billion XRP “may be illiquid or subject to significant selling restrictions” tied to daily trading volume, including “at least 6.7 billion XRP” held by Ripple co-founder Jed McCaleb that are subject to an agreement dating back to 2014. In addition, Messari said that it believes that the circulation figure includes 5.9 billion XRP pledged by Ripple co-founder to a nonprofit entity called RippleWorks, an amount that it contended hasn’t been delivered. As well, Messari identified 2.5 billion XRP held by RippleWorks that are also subject to daily selling restrictions. Further, the report also estimates that as much as 4.1 billion XRP sold via XRP II, Ripple’s money-services business, is also subject to selling restrictions. But Messari notes that “it is impossible to track the magnitude of this illiquidity without direct disclosures from Ripple, so we use a reasonable estimate.” All told, these factors have led to the market cap of XRP being “likely overstated” by more than $6 billion, according to Messari’s reasoning. Further, in its report, Messari estimated that the figure could ultimately be higher, explaining:
“In reality, this estimate may prove to be conservative, as they belie XRP trading volumes which have consistently fallen well below that of EOS and Litecoin, two cryptoassets whose current referenced market caps are a mere 17% and 15% of XRP’s, respectively. In addition, we believe the actual amount of ‘restricted’ XRP in distributions to investors, banking partners, and team member may be significantly higher than our initial estimates reflect.”
The report notes that it sought input from Ripple and RippleWorks before the report’s publication but hadn’t heard from the company, which Messari contended results in questions about how the restrictions work in practice. “Ripple has not shared the methodology or reference exchange data it uses to calculate trading volume for XRP, a critical data point that drives selling restrictions. More than 99% of XRP trading volume appears to come from overseas exchanges, many of which have been suspected of wash trading,” the report states. CoinDesk reached out to Ripple for comment prior to the report’s release but did not hear back by press time. On Thursday, Ripple released its Q4 report, noting that average daily XRP volume was $585.7 million. The firm sold $88.88 million programatically – an increase compared to its third-quarter figure of $65.27 million – and $40.15 million in “institutional direct sales,” representing a decrease from Q3’s $98.06. Source: www.coindesk.com

Arrington XRP Leads $1 Million Funding Round in Dapp Economy Startup

Dapp economy startup Totle has raised $1 million in a private funding round. Arrington XRP, the hedge fund launched by TechCrunch founder Michael Arrington, led the round along with NEO Global Capital and Goren Holm Ventures. Detroit-based Totle offers an application programming interface (API) allowing crypto wallets such as EtherDelta and RadarRelay to offer certain exchange functions, including payments and transactions, arbitrage exploitation and rebalancing, said CEO David Bleznak. In particular, the startup focuses on supporting other decentralized platforms. The new funding will be largely be used to hire more developers, with about 40 percent also going into administration and marketing, Bleznak told CoinDesk. “By adding just two or three more developers we can integrate a lot more [business-to-business] customers,” he said. Response to the API, which launched in the last month, has generally been positive, he said, adding: “A dozen groups are actively integrating [the API] into their softwares and another 50 groups that don’t have the resources [are in line].” The company’s tool allows for retail investors to optimize price discovery when buying or selling across borders, said Geoffrey Arone, a partner with Arrington XRP. “If you’re a [professional] trader, you can talk to people and get the best possible price,” he said, but “a lot of folks don’t have the time or means to execute [trades] to get the best possible price.” He also cited the team’s flexibility as a reason for Arrington XRP’s investment, noting that Totle had been working on a decentralized application with a business-to-consumer focus, but shifted to focus on the business-to-business API base due to “natural consumer demands.” The investment indicates Arrington XRP’s confidence in how Totle is operating as well, he said, following previous statements by Arrington indicating the company may not invest in other U.S.-based startups. Source: www.coindesk.com

Euro Exim Bank Taps Ripple’s xRapid for Cross-Border Settlements

Euro Exim Bank, a London-based bank primarily focused on providing financial services for export and import companies, will become the first bank to publicly announce it is using the XRP cryptocurrency for cross-border payments.

Ripple announced Tuesday that Euro Exim Bank, alongside payment startups JNFX, SendFriend, Transpaygo and FTCS, would be leveraging XRP for cross-border transactions. Further, Ahli Bank of Kuwait, BFC Bahrain, ConnectPay, GMT, WorldCom Finance, Olympia Trust Company, Pontual/USEND and Rendimento have signed on to RippleNet.

As a result, the startup now has more than 200 customers worldwide, according to Tuesday’s reveal.

Ripple CEO Brad Garlinghouse said the company is now signing two-three customers per week, and last year saw a 350 percent increase in customers sending live payments.

“We’re beginning to see more customers flip the switch and leverage XRP for on-demand liquidity,” he added in a statement.

Euro Exim Bank director Kaushik Punjani noted that his bank’s customers have traditionally been restricted from settling transactions quickly and cost efficiently. This issue extends to both major corporations and individual remitters, he said, adding:

“Working collaboratively with Ripple and selected counterparts, we have designed, tested and are implementing both xCurrent and xRapid in record time, and we look forward to the benefits these will bring our customers.”

David Lighton, CEO and co-founder of remittance service SendFriend, similarly touted the focus on cheap cross-border payments as the main benefit of using xRapid.

“A distributed ledger-based solution, leveraging Ripple’s XRP asset allows us to settle transactions in real time, with lower capital requirements and lower costs. We’re proud to partner with Ripple to offer our customers cheaper, faster, payments to the developing world,” he told CoinDesk.

A number of other companies have already begun using xRapid, which uses the XRP cryptocurrency, for international payments, including MercuryFX, Cuallix and Catalyst Corporate Credit Union. However, while the three firms provide financial services, none possess a banking license like Euro Exim does.

In the past, other companies including Western Union, MoneyGram, Viamercias and IDT have trialed xRapid, though none are utilizing the platform in full production at this time.

Source: www.coindesk.com

The Best Way to Exchange XRPs

Originally founded in 2012, Ripple developed its own digital currency called XRP, which is now one of the oldest cryptocurrencies within the crypto space. It has managed to become the world\'s third cryptocurrency after bitcoin and ethereum (as of October 2018), sometimes even replacing ethereum as the second most valuable coin. However, despite a staggering performance and widening adoption, it is still complicated for ordinary people to understand how the whole system works. So, what is XRP exactly? Why the coin became so popular that even such giants as Santander and SWIFT got interested in the company? Why the ever-growing number of institutions choose to join the RippleNet with more and more businesses adopting technologies developed by Ripple? Before we\'ll go further, and find the answers to all these questions, let\'s clarify the terms because they\'re often used wrongly. Generally, \'Ripple\' refers to three things: Ripple – the firm operating the Ripple platform XRP – the virtual currency that is developed to facilitate payments on Ripple RippleNet – a global settlement system that connects banks, exchanges and other financial firms via the distributed ledger Now, when everything is more or less clear, let\'s turn to the exploration of the fascinating world of innovations and technological advancements driven by the company. Swap XRPs with hundreds of other crypto-coins instantly