Ripple the company was launched a few years ago with the goal of being a cryptocurrency built for enterprise and banking use. They offer banks a software called Ripple Connect which uses InterLedger Protocol (ILP) to transfer money between banks with a minimal fee. Ripple’s digital token, XRP, is a cryptocurrency that exists outside of Ripple Connect. It is high in liquidity and has fast transactions.
Here’s an overview of what’s been going down with Ripple the company, and XRP the coin.
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XRP’s Price Action
Ripple’s XRP saw a bit of a pullback alongside with other major cryptocurrencies on Monday. Against the USD, it has crossed below the daily Ichimoku cloud and the 61% Fibonacci retracement level of $.140 is acting as a key pivot. From a medium-term perspective, XRP is supported at $0.87.
Dubai’s Crypto exchange Adds XRP
The pullback has been despite the fact that Dubai-based cryptocurrency exchange, BitOasis, has added Ripple’s XRP to its list of tradable currencies. BitOasis said it added the cryptocurrency to its site to meet an “increased demand”. The announcement initially boosted Ripple’s value on Sunday.
This wasn’t the only good news for Ripple this week. The UAE’s RAK bank has also shown a keen interest in Ripple. Thanks to a new partnership, both entities will use blockchain technology for instant payments to India.
Of course, these short-term movements shouldn’t be taken seriously when investing in cryptocurrencies.
Ripple the Company
While Ripple has shown an incredible amount of growth in the past 12 months, there are some factors you need to keep in mind as an investor.
One of the reasons why Ripple has gained popularity is because of the company’s strategic partnerships with big market players and banks. But, there is a massive difference between XRP the coin and Ripple the company. The core business of Ripple the company is to sell blockchain based banking software. Ripple has three other mainstream products xVia, xRapid, and xCurrent.
xVia is yet to be launched. Once it hits the market, it will make it easy for banks and companies to send money without using XRP.
Final Thoughts on XRP?
Ripple says it will use the blockchain technology underlying Bitcoin to rewire the global market for financial transactions. That business is separate from XRP.
Therefore, XRP’s long-term success would depend on the performance of the parent company, Ripple, and whether their partners continue using XRP for transactions.