Understanding XRP. Digital Currency Holdings INDEX

Transcription

1 Understanding XRP Digital Currency Holdings INDEX 1. What is XRP 2. RippleNet & the relationship it has with XRP 3. XPring 4. Pros & Cons 5. Burn Rate 6. XRP Team 7. Sources

2 A look into XRP 21st November 2018 What is XRP XRP is the cryptocurrency created by the founders Jed McCaleb, Aurthur Britto & Chris Larsen who gifted 80% of XRP to Ripple Labs (Previously known as OpenCoin Inc) Deflationary asset Independent of Ripple (Many still debating over this) Open-Source blockchain developed for payments Started trading 5th August $ All time high of $3.65(USD) At the time of writing it is the 2rd largest coin by Market Cap trading around 0.43 USD Circulating Supply - 40,327,341,704 / Max Supply - 100,000,000, billion XRP is in an Escrow Account / can release 1 billion a month maximum for 55 months Cannot Mine XRP, it is pre-mined RippleNet RippleNet is a global payment system for Corporates, SMEs, Small banks and payment providers. It boasts of reducing fees, transaction time and reduces the need for Nostro Accounts to transfer money across borders. It is currently working with Santander, Bank of America, UBS, American Express, RBC and Westpac. It currently has three main features: 1. xcurrent - Real-time settlement with bidirectional messaging - DOES NOT USE XRP 2. xrapid - Access on-demand liquidity through digital assets (XRP) / Uses XRP as a bridge between currencies (launched 1st October 2018) 3. xvia - One standard API to access RippleNet (Payment Interface that can be used to make payments that tap into RippleNet ) xcurrent is the highway and xrapid is the fast car to get you to the end of it. Currently a majority of RippleNet s partners are only using its xcurrent product, which still relies on Nostro accounts and doesn t use XRP. The reported goal is for its xcurrent users to start to trial xrapid, it has already signed financial institutions such as Cuallix, Catalyst Corporate Federal Credit Union, IDT, Cambridge Global Payments and Mercury FX to xrapid. It has reported that xrapid reduced costs by 40-70% within Viamericas & Mercury FX. The relationship between RippleNet and XRP through xrapid. To send money from the US to Mexico, xrapid buys XRP on a crypto exchange (Bittrex) sells the XRP for Peso s on the Mexican exchange (Bitso) which are then passed to the local payment rails to the Mexican Bank. (It boasts of a transaction time of seconds), XRP is the liquidity which allows the transfer of fund globally through xrapid. For liquidity to grow, XRP must be listed on as many exchanges as possible.

3 A look into XRP - 16 th October 2018 XSpring - The purpose of XSpring is to support new businesses by helping them build on the XRP ledger, through investment, incubation and grants. - Ripple has hired Ethan Beard, (Former Facebook network developer) to lead. - XPring has various products already in the market. These include Coil, XRP Tip Bot, SB Projects, Omni, and Blockchain Capital. Examples - Coil allows internet users to donate XRP to support content creators of their choice. - SB Projects helps artists in monetizing their content. - Tip Bot also allows people to tip video and content creators on social media. - There are apparently 100 innovative products using XRP through XSpring. Pros & Cons of XRP Pros Has a practical purpose when used with xrapid High TPS (1500). Most suited Cryptocurrency for the use of xrapid. Ripple put most of its XRP into a cryptographically-secured Escrow account (Shows Ripple care about the stability of the coin instead of dumping it all on the market for a quick profit). xrapid reportedly reduced costs by 40-70% within Viamericas & Mercury FX xrapid reduces the need for Nostro Accounts freeing up millions of dollars in capital for banks to use effectively Cross border transactions reportedly require 2-3 days for large payments, xrapid boasts it can do it in seconds Recently supported for custodian services on Coinbase Cons Competition, xrapid isn t required to only use XRP, if a more innovative coin is created it could be replaced with an alternate coin as the bridge currency. Regulatory uncertainty, it is yet to be decided if XRP is a security Large Supply of 100 Billion Coins (this is because of its liquidity purpose) High dependability on xrapid to succeed. Western Union trialed xrapid and reported that it isn t making payments cheaper. Santander (one of the first banks to use xcurrent) has recently adopted SWIFTS global payments initiative, a competitor for xcurrent. (Not a lot to do with XRP but still a company moving away from current blockchain) Banks could create their own system using a different cryptocurrency

4 A look into XRP - 16 th October 2018 Burn Rate of XRP To protect the XRP Ledger from being disrupted by spam and denial-of-service attacks, each transaction must destroy a small amount of XRP. This transaction cost is designed to increase along with the load on the network, making it very expensive to deliberately or inadvertently overload the network. Approximately 5 million XRP have been destroyed so far. Every transaction has a fee of XRP. That means that after every 100,000 transactions 1 ripple will have vanished for good, the fee is not fixed*. Team Ripple CEO / Brad Garlinghouse a former CEO of Hightail, President of Consumer Applications at AOL and held various executive positions at Yahoo. I have every confidence that major banks will use XRapid as a liquidity tool this calendar year. You know, by the end of next year I would certainly hope that we would see you know in the order of magnitude dozens. - Brad Garlinghouse - To read about all of the team Key recent News Mercado Bitcoin (Largest Crypto Exchange in Brazil) has listed XRP Ripple Article highlighting their progress Interview with Ripples CEO Explanation of RippleNet s three different products

5 Sources This report is issued by the Investment Advisor, Digital Currency Holdings Asset Management Pty Ltd ( DCH ), ABN It is impossible, in a report of this type, to take into account the investment objectives, financial situation and particular needs of each reader. Accordingly, DCH and Token Capital Management Ltd ( TCM ) make no representations towards, and no reader should infer, anything in this report as being an investment recommendation. Readers should not rely on this report as the sole or principal basis of a decision to invest in cryptocurrency and should seek independent financial and taxation advice before making a decision on whether to invest in cryptocurrency. No person is authorised by DCH or TCM to give any information or to make any representation not contained in this report. Any information or representation not contained in this report must not be relied upon as having been authorised by or on behalf of DCH or TCM. Nothing in this report is, or may be relied upon, as a representation as to the future performance of cryptocurrencies or blockchain assets. DCH assumes no responsibility or liability for any errors or omissions in the content of this document. The information contained in this document is provided on an as is basis with no guarantees of completeness, accuracy, usefulness or timeliness.