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Revisiting the Claim that XRP was Designed for $10,000

Brad Garlinghouse Lobbies for Ripple XRP Adoption, Solicits US-Congressional Fair Hearing

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Revisiting the Claim that XRP was Designed for $10,000

Cryptocurrency investor Mark Phillips had posited that XRP, an open source innovation of Ripple Lab. Inc., was designed for $10,000.

The crypto investor, leveraged on how XRP’s created and the golden fact that Ripple’s XRP was designed to be a replacement for retail and institutional financial system across the world. Marks corroborates his claim with different indices worthy of being believed hook line and sinker.

Unlike SWIFT, Ripple’s XRP is Faster and Cheaper

One of his assertions is the statement by Ripple Labs co-founder Arthur Britto where in 2017, he said “XRP must be scalable to accommodate 7.5 billion people.”

Mark pointed that unlike SWIFT, Ripple makes XRP a faster, cheaper and more reliable tool for cross-border remittance by offering customers a reliable, on-demand source of liquidity for cross-border payments.

XRP Liquidity Explained

Quoting Investopedia, Mark pointed that “Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset’s price.”

According to Mark, what we see in the cryptocurrency space today is price volatility coming from the fact that a small number of investors trades XRP on the exchanges.

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“Liquidity for XRP or any crypto comes as the price rises,” he said, adding that “Higher prices equal higher liquidity.”

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Mark said Ripple Labs locked around 55% of total XRP in escrow accounts will drive the price of XRP higher.

XRP price has been ranging between $0.25 and $0.60, representing a 120% range either side of the median.  He held that while this movement may appear big, institutional investors do not have problem with it since XRP is fast in settling remittance. The only problem they may have is that the value of XRP was influenced by minute retail investments.

“To move value on the scale of SWIFT’s $5 trillion of daily transactions, requires much more liquidity than is available in today’s XRP pool,” he said.

For example, Mark said if around “45 billion XRP are available, this would require a price of approximately $111”.

Since some XRP has been lost or burned with a large volume of it locked up due to long-term holding, a smaller supply of XRP needs a higher price to have the liquidity that can accommodate SWIFT.

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What Will Drive the Price of XRP?

Mark posited that cross-border remittances using MoneyGram, SendFriend and some others will increase the demand for liquidity, thereby driving the price of the asset.

He said: “This creates a virtuous circle in which demand increases prices, which increases liquidity and demand.”

Mark noted that if there is possibility of tokenising all $1.14 quadrillion value of all asset classes using Ripple’s XRP, it would require nothing less than $11,400 per XRP.

While this may not likely happen, Mark said it shows the “scale of liquidity that XRP is designed to handle”.

Esme has years of experiences in online publishing and business affiliation. She started her career back in 2015 when she joined multiple local news publications focusing on Cryptocurrency and Blockchain, Global Warming, Business, and Marketing. Regarding personalities, Esme is the bubbliest. She loves hanging around with crypto friends. She is now a full-time contributor at TODAY'S GAZETTE. email: esme.anderson@todaysgazette.com

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