The cryptocurrency space circulates with news about surging coin prices valuation differences. Ripple (XRP), however, has become one of the daily talk subjects after Japan and South Korea tried their blockchain technology. Recent developments present the network’s performance as a positive solution for cross-border payments. The tests from the two countries are yet to be disclosed in detail as they relate to banks and great financial service providers. At this point, many crypto enthusiasts and investors in Japan and Korea question the legitimacy of Ripple’s success. Two charges arise from the argument:
The first argument suggests Ripple plays a dubious role in improving payment systems. The network was essential for reducing money transfer fees for making cross-border payments. Banking systems use it to bridge the wide gap between several digital currencies to shape the market better. Ripple’s other role was to promote liquidity the same way governments and forex markets function.
However, a New York Times reporter – Nathaniel Popper, suggests that XRP’s role is unknown, and banks haven’t shown plans to use it yet. Most Ripple’s users, who seems to mostly buy ripple with PayPal, use one of the network’s tools, xCurrent, for messaging.
One factor that causes doubt to tie Ripple’s price is the token its founders hold. Reports show the individuals owning more than half of the network’s tokens. While it is common for a company’s founders to have a larger piece of the cake, Ripple’s creators might manipulate XRP prices for profitability. Besides gaming the system, Brad Garlinghouse and his partner control more than they should.
Cryptocurrencies are volatile and complicated assets that demand extensive research before one purchases the coins. Several myriad factors affect the market prices, including XRP. Thus, it would be best if you considered these factors:
Ripple has already pre-mined 100 billion XRP coins and releases them into the market gradually. Less than half are circulating and tie differences reserved by Ripple Labs for future use. The network releases about 1 billion coins monthly, depending on demand and supply. The intention was to prevent fear that XRP’s price would drop if Ripple released all its holdings at once or in massive batches.
Stellar is one of XRP’s main competitors. It has also developed a project to improve cross-border transactions proactively.
Several cryptocurrency exchanges in Japan and Korea allow users to buy and sell Ripple (XRP). Besides boosting people’s confidence, it increases the coin’s credibility to expand market demand.
Most global payment services in the banking sector have tried Ripple’s technology to establish if it resonates with their operations. Besides the above factors, speculative XRP trading and changes to crypto laws influence the global adoption of XRP and its price.
While some people may claim Ripple (XRP), organizations have attested its capacity to reduce costs for moving funds and assets globally. The network’s overall technology has also generated massive returns for many people in the last few years.