Ripple makes a splash in startups
By Teamspirit on Tuesday, 13 March 2018
Ripple has announced plans to invest in startups that develop uses for its cryptocurrency, XRP.
The payment company’s digital token was intended to become the cryptocurrency of choice for banks and financial institutions, but aside from a few remittance services, that hasn’t happened yet.
But a lack of take-up hasn’t stopped XRP’s value rising fast. The currency reached a market cap peak of $128 billion before January’s crypto-crash. Today, it sits at around $30 billion, but remains the third largest digital currency by market cap, behind only Bitcoin and Ethereum.
Yet investors remain concerned about a perceived lack of use for the coin, which explains Ripple’s investment in developing alternative uses.
January saw the first such move, as the payment company led a $25 million investment in San Francisco-based storage service Omni. The startup has agreed to introduce XRP to their service, though it remains unclear to what extent.
Over the next few months, we’ll be watching closely to see how Ripple’s experiment develops. The future of XRP, and of cryptocurrencies generally, may depend on developers taking an active role in growing their creation.
As for Ripple, their choice of partners may determine whether XRP becomes the coin of choice for financial institutions, or remains one of many options for crypto-speculators.