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Is Ripple’s Contractual Term with Over 200 Partners Behind XRP Low Price?

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Is Ripple’s Contractual Term with Over 200 Partners Behind XRP Low Price?

  • Big Institutions are Acquiring XRP via OTC, What is the Effect?
  • Ripple Contractual Term With Its Over 200 Partners.
  • What is Ripple’s Major Goal.

The large credence and glory Ripple Labs Inc. is grabbing in the finTech industry through its partners can not be underestimated or compared with any other in the blockchain industry. However, the juicy outcome of Ripple’s numerous partnerships, which investors expect to see from XRP, is not reflecting.

Even though they are still very much hopeful of better days, investors and lovers of the cryptocurrency have voiced out their concerns over what they tagged a moribund or inert growth of XRP.

Aside lover and investors, naysayers are also dropping their sentiments with believes that XRP token was created not for the benefit of investors, but to fund Ripple and boost its value.

Some even said, Ripple is a completely different entity from XRP, therefore, the former cannot change the state of the latter. While it is a known fact that Ripple and XRP are not the same, the fact that Ripple is majorly pushing for the adoption of XRP can also not be denied.

Recently, Mesarri Crypto, in a report of its conducted research, alleged that XRP market cap available on crypto data services and exchanges is ‘overstated’ by about $6.1 billion, and Ripple, is yet to respond to the allegation.

Big Institutions are Acquiring XRP via OTC, What is the Effect?

It has been observed that a number of big institutions and companies, who desire to buy XRP token, acquire it directly from the parent company Ripple through Over the Counter (OTC) Trade.

This has been reckoned to have no positive impact on the price of the token, even though it means huge additional liquidity.

To see the expected valuation surge of XRP value, big firms need to make order on open exchanges, this way, the effect will be felt in the market.

A video podcast on YouTube channel Jungle Inc., reflects that Coinbase, on adding XRP, did not make its huge XRP acquisition from Binance, they made their order directly from Ripple.

Also READ  xRapid's Regulatory Approval in the US, Affects Ripple XRP Positively

The big institutional buyers who are integral part of the ecosystem have a contract with Ripple at a specified price, therefore, such transactions do not go in or add to the regular markets we buy from.

The video reveals that this is the exact reason we didn’t see a massive XRP price jump when Coinbase started trading XRP, and the same will be true for a number of big players when they buy XRP directly from Ripple.

SBI is setting up a custodial service in exchange for mutual funds. When people like me and you want to buy XRP, we may decide to approach SBI to acquire the assets on the market.

Contrarily, SBI is not building up the institutional trading, they buy directly from Ripple and this makes trade hits Ripple’s exchange just like the way ours hit Binance or Coinbase.

The question which arises from here is; Why is it happening this way?

Ripple’s Contract With Its Over 200 Partners

The podcaster mentioned that he received a piece of information from someone in the XRP community, whom he recognized to have contacts with Ripple officials and bigwigs in the industry, that Ripple partners must always acquire XRP through the firm.

He said:

“Ripple has in their contracts with every single partner, the 200-plus partners which includes all the preferred exchanges and institutions, that they are required to acquire XRP via OTC”, the Podcaster continued. “They are not allowed to make purchases on the open market and the purpose of this is to temporarily keep the price of XRP suppressed.”

The YouTube podcaster added that he was informed that the contractual term isn’t going to be long-term, it would be lifted later and we will see the floodgates open.

The YouTuber said he’s yet to confirm this because he does not have access to Ripple contract, but this really make sense based on present happenings. The huge XRP transactions happen via OTC.

The YouTuber stated that the short term goal of Ripple Labs Inc. is broad distribution of XRP, and if founders and the company really want to get their value out of the XRP they are hodling, “they have to build the system up.”

Also READ  How Soon Can XRP Reach $500 Or $1000 Milestone? Community Weighs In

What is Ripple’s Major Goal

Earlier, David Schwartz told us that it is impossible to buy a household Bitcoin with $1 or $10 Bitcoin.

But now is possible due to the high price of Bitcoin. The same applies for XRP, to run a chunk of SWIFT’s transfer volume through XRP, a much higher price of the token is needed.

That is really the major goal of the company, and that will only happen when XRP is already distributed via OTC to institutions and those who need it. Then, Ripple can get the ecosystem cranking by dissolving the contract terms.

This, according to the podcaster, was done solely to make Chris Larson acquire his billions of dollars from the token, while also making Ripple acquire its full potential rather than do what is right for the ecosystem by making the price of XRP go high.

The Jingle Inc .YouTube podcaster said he hopes that someday, the restriction will be lifted and institutions will be able to buy XRP from open market.

“The goal today is broad distribution of XRP and a low price helps for that but we are getting ready to switch over as we see xRapid growing to actually send in payments, major payments through this system, and XRP price would ramp up”, the podcaster extended.

“We’re going get more payments running through X rapid and thus a higher and higher price.”

Jack, the Jack-of-all-trades, is a full-time contributor to TODAY'S GAZETTE. Jack jumped into writing through a friend and now doing excellently.Through the years, he has contributed his voice in covering current events and political issues, linking them to cryptocurrency and blockchain.Jack is much concerned about crypto mass adoption, exactly why he joined in launching Today's Gazette.Email: jack.marshall@todaysgazette.com

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